The study, announced earlier this week in Johannesburg, will look at two sets of opinions as to why multinationals are not investing rapidly in Africa.
The first part of the study will involve interviews with top executives of US-based multinationals to find out why they have reservations when it comes to investing in Africa. The second part of the study will see the findings of the first being put to policy-makers such as ministers of finance and planning, and also to senior civil servants on the continent. Leaders of international organisations involved on the continent will also be asked for their feedback on the findings.
The study is being conducted by Baird's Communication Management Consultants (Baird's CMC), an international communication management consultancy, in partnership with the US Chamber of Commerce in Washington DC.
The study will be just the first in a series that the company will carry out in the future on the subject of the investment and policy relationships between the developing world and its potential investment partners.
The study could be a first step to understanding the policy changes required to normalise US investments in Africa, says Daeman Harris, vice president International Division, Middle East and Africa, of the US Chamber of Commerce. “We want to get to the bottom of the issues that either encourage or dissuade US investors from [investing in] the continent. This unprecedented study will articulate both the complexities and opportunities seen by the US business community as they weigh decisions to enter into African markets. We want this survey to serve as a point of departure for a new and dynamic dialogue between both US and African entrepreneurs and their government counterparts”.
It is essential that the views expressed by the US business leaders are frank and do not sugarcoat the pill – no matter how bitter it may be – so the actual contacts will be in the form of confidential interviews with guarantees of no attribution in order to ensure the information obtained moves beyond public rhetoric. The study framework is therefore designed to bring to the surface private corporate investment conversations that rarely see the light of day in public forums.
Then African policy-makers will be engaged with the aim of ascertaining what policy changes will be required to satisfy investors' concerns and conditions for improving investment from US multinationals, and to get a realistic assessment at to whether the changes are likely or even realistic. A panel of senior, experienced interviewers will conduct all the interviews.
An aim of the study partnership is also to bridge the knowledge-gap in the global discourse between governments on how to increase trade and investment in the continent. “The notion of an African century has become almost axiomatic in any discussion about trade, investment, development and good governance on the continent, but it has not yet translated into sustained investment growth across the continent,” says Mark Chataway, Baird's CMC co-chairman.
Policy-makers often get sugarcoated views in public meetings, but according to Harris, “the goal is to contribute to economic growth in Africa, by helping policy-makers to focus on frank private views, as opposed to the polite public conversations. We hope that the outcome of this study will be a more productive engagement by US business and African policy makers, to improve investment in Africa,” he said.
He believes that international investment and trade is redefining the global economic landscapes, but that the commercial relationship between the US and Africa has yet to develop into a truly successful partnership.
“I hope, however, that independent intelligence on the opportunities in Africa and the many, different obstacles that hinder its progress could begin to transform this partnership.”
Francois Baird, Baird's CMC co-chairman, believes the research will identify some misconceptions that continue to create barriers and produce surprises, "We will be considering systematically the attitudes of African leaders – both policy and decision-makers – with a view to addressing these barriers and perceptions. Usually, people just try to discern their responses by trawling through speeches,” he said.
The results of the study will be published next year and discussed in a public forum with senior business and government leaders. The aim will be to foster convergence between what African politicians and policy-makers are willing and able to do, and what US business needs to invigorate its investment in Africa.
