The document discusses the historical and current challenges faced by Africa, including poverty, unemployment, and lack of infrastructure, and examines how foreign aid and remittances have contributed to limited progress. It highlights the importance of investments over aid for economic growth and emphasizes the potential of Africa as a rapidly growing market with significant opportunities. The text advocates for sustainable investment practices that focus on education, technology transfer, and respect for human rights to facilitate future growth and progress.

1. ”AID FOR TRADE: Pavingtheway
for futureinvestments and
Growth in Africa”
Janvier M. Nzigo

3. WHY POVERTY IN AFRICA:
1. Colonial Period
2. Independence and Post-Independence period
3. Africa and Cold war
4. Bad governance; which has brought/ influence:
• Absolute poverty
• High level of unemployment
• High level of inequality
• Lack of Human capital structures
(…)

4. • Foreign debt: USD 300 billions, in 2009
(NEPAD)
• Wars, Conflicts and uprisings (47 countries
since independence)
• Bad (or non existing) infrastructures
• Capital flight
• Lack of Trade and FDI

5. AID: The solution to the problem?

6. • The USA gives +/- USD 25 billions per year
• Germany: USD 13 billions
• Scandinavian countries, Luxembourg and the
Netherlands gives each 1% of their GNI to aid
• Other OECD countries: 0.7%
• ”Over thepast 60 years at least $1 trillion
ofdevelopment-relatedaid has beentransferred
from richcountries to Africa.” (DambisaMoyo)

7. Case: Fighting Malaria
• An estimated 3.3 billion people throughout the
globe were at risk of malaria in 2010.
• Malaria has been reduced worldwide
by approximately 17% since 2000.
• 91% of all malaria deaths worldwide occur in Africa.
• Delivery of insecticide-treated bed nets (ITNs) has
risen from 5.6 million in 2004 to 145 million in
2010.
• The most effective treatment for malaria (ACT) has
increased in availability from 11.2 million in 2005 to
181 million in 2010.

8. • MileniumDevelopment Goals:
- The Africancontinent has thehighestimprovements
in terms ofaccess to education for women and girls.
MDG 2 (Achieve Universal Primary Education is
most likely to be achieved by 2015)
- ”With onlythreeyearsleft to achievethe Millennium
Development Goals, Africa is reportingmixed
progress in achievingthegoals: there is still a lot
ofwork to do in specific areas such as gender and
health, and manychallengesremain…”
Mr. Nnadozie, UNECA Press Release No010/2012

9. REMITTANCES: an alternative solution (?)
• Remittancesdominateaidyetremainunspoken
• The World Bank believes global remittanceswill be
close to $600 billion a year.
• ”Money transfers from workersabroad to family
back home have tripled in a decade and arethree
times largerthan global aidbudgets”. – The
Guardian

10. • AID has helped reduce child and maternal mortality,
malaria and other deadly diseases
• AID has helped African countries to score points on
the Millennium development goals
• AID has helped maintain poor countries budgets;…
• But, after 60 years AID did not lift Africa out of
poverty
IS IT THE TIME TO TRY SOMETHING ELSE?

11. 2011 Human Development Index

12. Connecting Africa to the rest of the World
Global shipping routes
Source: seaweb.org

13. • ” Africa is disconnected from the global economy,
which is very bad news for a continent that
desperately needs international trade (the
disconnection is both symptom and cause of the
lack of trade). Lack of international trade = poverty
for small economies. This lack of trade links reflects
many factors:rich country protectionism, domestic
policies on customs & tariffs & foreign investment,
poor port and road infrastructure, thus very high
land transport costs within Africa, barriers crossing
borders within Africa; Africa stereotypes that
discourage foreign investors and so on…
- William Easterly

14. Africa’slioneconomies
The Africancontinent is thenextfrontier. With
sevenoftheten fastest growingeconomiesofthe
world beingAfricancountries, this is a market
thatcan not be overlooked by Norwegian
investors or
companieswithinternationalambitions.
- NABA

15. • IMF World economic Outlook 2012:
Iraq: 10.80
China: 8.37
Niger: 7.96
Mozambique: 7.86
Ghana: 7.74
Zambia: 7.66
Congo: 7.57
Ivory Coast: 7.56
Rwanda: 7.23
Cambodia: 7.17

17. WHY INVESTMENTS IN AFRICA
• From “the Hopeless continent” to “Africa rising (The
economist)
• Massive Chinese investments in a decade
• “100 millions Africans lives like an average Norwegian”
(Aftenposten, Web edition Dec 24, 2010)
- In contrast to Aid, Investments creates job opportunities
- Jobs generates economic growth
- Investments lifts people from poverty to middleclass.

18. • OnlyfourAfricancountrieswereembroiled in
armedconflict in 2010, comparedwith 14 at the
end ofthe 1990s. (Ban Ki-Moon, july 2010)
• In 22 countriesofsub-SaharanAfrica, the HIV
incidence rate declined by more than 25
percentbetween 2001 and 2009 (UNAidsreports)
• And the most under-communicatednewsflash is
this: Africa is currentlyoneoftheworld’sfastest-
growing regions in the world.

19. SUSTAINABLE INVESTMENT
• CSR and Local Content: The Norwegian way
• Respecting international Laws on Trade,
Human rights
• Example: STATOIL in Angola (23 out of 46 are
locals)

20. AID+ INVESTMENTS
• Aid that focuses on Education, the Environment
and the transfer of technology
• Aid that pave the way for future investments
• WHY EDUCATION?
Innovation
Knowledge transmission
Natural resources management
Self discipline
Modernity

21. Consciousness
Improvement of Standard of life
Decreases/ fight Child labour
Entrepreneurship
Attractive to Foreign Investment
Transparency and Criticism to state
 Insight and Knowledge of (Basic and general)
Human Rights
 Aspirations to Democracy and the rule of law

22. ”For thepastdecades,
Norway’srelationshipwiththeAfricancontinent has
beencharacterised by aid. Ourjob is to contribute to
Africa’s progress by focusingoninvestments,business
and trade.”
Trond Giske, Norway’s Minister of Trade and
Industry (keynotespeech at theNorwegian-African
Business Summit 2011)

23. www.investinafrica.no