Doing well by doing good

May 21st, 2009 4:22 PM UTC
By Jessica.Gomez.Duran

The Africa Progress Panel (APP) is an independent body whose members currently include Tidjane Thiam, Muhummad Yunnnus, Kofi Annan and Bob Geldof. The Panel works to track the commitments made by African governments and their international partners especially in terms of good governance.

They publish a regular newsletter which is full of information related to Africa, including policy news and a calendar of key upcoming events. As you can see below, their latest newsletter has an editorial on the importance of business:

Business: doing well by doing good

Most people agree that economic growth depends upon a vibrant private sector. But when it comes to Africa, there remains a degree of schizophrenia about the role of business.

Investors outside Africa hear about the opportunities but are put off by the negative image of Africa as risky and unsafe. And others remain suspicions of business – as exploitative, unethical and motivated only by financial profit.

Africa is vast, and diverse. Headline-grabbing instability in one place has little bearing on conditions elsewhere. The biggest constraints to investors are mostly mundane: red tape and high costs, poor infrastructure, limited access to capital, underpaid officials and weak law enforcement, fostering uncertainty and corruption.

Many governments are trying to do their part. According to the World Bank, more business-friendly reforms were implemented over the last year than in any previous one.

Business can add social value. At a minimum, this means doing no harm, paying taxes, not partnering in corruption and implementing codes of good practice, including the Extractive Industry Transparency Initiative.

But much more is possible. Healthy, educated and connected people are essential for market growth, and stability. Corporations can work with authorities and civil society on both policies and their implementation, and on projects that both attract investment and create social and environmental benefits.

This should now become standard. There are many best practices to draw upon, and more business-oriented advocacy groups springing up, both in Africa and internationally – including the Business Call to Action, the newly formed ‘Frontier 100’, Investment Climate Facility, Business Action for Africa, the APP’s own Business Advisory Group and many others.

Good business is good for Africa.

Click here for access to the full newsletter.

-Jessica Gomez-Duran

TAGS: Bob Geldof, Policy News