The Africa Competitiveness Report 2007 identified improved access to finance as central to boosting economic activity on the continent, along with better infrastructure and stronger institutions.
"Low access to financial services emerges as a major obstacle for African enterprises, but poor infrastructure, corruption and weak institutions also make African goods and services less competitive in the global marketplace," the report states.
The report gave South Africa an overall international competitiveness ranking of 46 out of 128 countries. South Africa was one out of 29 African countries measured.
The report outlined a number of steps that Africa's 53 countries can take to improve business conditions, stating that energy and transportation are among the main bottlenecks to productivity growth and competitiveness in Africa.
"Firms lose as much as eight percent of sales due to power outages, and transportation delays can account for as much as three percent of lost sales," the report states.
"Further, improvements in the regulatory environment (such as better collateralisation, transparency and auditing) represent a necessary step for unleashing the potential of finance for competitiveness in Africa," the Africa Competitiveness report 2007 states.
Li Ruogu, chairperson of the Export-Import Bank of the People's Republic of China and Malvinder Singh, head of Ranbaxy Laboratories of India both brought their experiences to bear on the question of similarities and differences between China and India and that of Africa.
Also at the opening press conference, Tokyo Sexwale, chairperson of Mvelaphanda Holdings said that while there were certain similarities, "Africa must find its own way". Regional economies must be integrated to a point where the continent's approximately 800 million people could comprise a harmonious market.
The United Kingdom Department for International Development said that the Africa Enterprise Challenge Fund would boost business development on the continent when it becomes operational from next year, offering grants of up to US$1,5 million.
These grants are to go to businesses that "provide innovative proposals for improving people's chances to take part in economic activity, particularly in the areas of finance and agriculture".
This US$320 million package will go to five subsidiaries of Celtel International B.V to help expand and upgrade mobile data networks in the Democratic Republic of Congo, Madagascar, Malawi, Sierra Leone and Uganda.
Half of this amount comes from the IFC's own loan account, while the other half comes from syndicated loans with participating commercial banks.
President Thabo Mbeki was later on Wednesday to deliver the opening address to the 800 delegates and 300 journalists at the three-day summit annual conference.
Source: BuaNews
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