Business leaders from across the Southern African Development Community (SADC) and Italy signed a landmark CEO Manifesto committing to aiding Africa’s economic development.
The agreement was sealed at the 12th CEO Dialogue on Southern Africa, and is the culmination of a two-day dialogue that brought together 150 business leaders and commits businesses to work together to help Africa fulfil its potential.
Held under the auspices of the African Development Bank Group, The European House Ambrosetti’s (TEHA’s) 12th annual CEO Dialogue on Southern Africa facilitated conversations between business leaders focused on addressing critical themes affecting Africa.
These include growing supply-side economic sectors such as energy and mining, and the enabling role of financial institutions in supporting SMEs.
Pietro Mininni, CEO of TEHA Africa, says: “The private sector is the driving force of Africa’s economy, accounting for over 80% of production, around two thirds of investment and three quarters of credit, while providing employment for about 90% of the working-age population.
“The CEO Dialogue harnesses the power of the private sector by building an influential community of leaders, facilitating business opportunities, strengthening political and business relationships, and drawing positive attention to strategic areas of industrial cooperation.”
The Manifesto sets out how businesses will cooperate with each and with governments in SADC across 10 strategic priorities:
- Energy for growth: With the right investments and market reforms, Africa could become a net energy exporter and a global hub for clean-power industries.
- Catalysing growth through infrastructure: Closing the continent’s infrastructure gap through strategic investment in modern transport, energy and digital systems could boost GDP growth by up to 2% annually.
- Enhance visa access: Simplifying cross-border mobility will accelerate trade, talent flow and investment, empowering businesses to thrive in an integrated continental market.
- Stability as business enabler: Countries experiencing intense armed conflict are losing about 2.5% of GDP growth annually. Private-sector investment, job creation, and inclusive growth are key levers for stability.
- African business champions for growth: Across the continent, thousands of startups and SMEs are scaling rapidly, with a reasonable degree of certainty to evolve into global champions in the near future.
- Scaling finance for SMEs: Closing the $331-billion financing gap in sub Saharan Africa is critical to enable SMEs to scale, invest in technology, and boost productivity.
- Unlocking digital potential: Only 36% of Africans have access to affordable internet. Bridging this digital divide – especially between urban and rural areas – is essential to unlock new markets, enhance productivity and boost financial inclusion.
- Harnessing Africa’s youth and human capital: By 2075, one in three working-age people globally will be African. To convert this demographic dividend into sustainable growth, bold investments in education, health, and skills development are essential.
- Women empowerment and gender equality: Gender parity and systemic inclusion of women will help unlock the continent’s economic potential.
- Regulatory stability: Stable and transparent regulatory frameworks are essential to attract and retain investment in Africa and are proved to increase FDIs by up to 30%.
Addressing delegates ahead of the signing event, Anthony Knox, South Africa country executive of Bank of America, said: “There is a lot of positivity towards emerging markets, which includes Africa.
“A positive flywheel effect of investment into economies benefits markets, lowers the cost of borrowing, allows governments to invest more and gives consumers the confidence to spend – all of which results in economic growth in a virtuous cycle.”
“As Africa defines its development agenda, stronger consultation between business and government will foster entrepreneurship, unlock competitiveness, and channel capital toward inclusive and sustainable growth,” said Valerio De Molli, managing partner and CEO of The European House Ambrosetti & TEHA Group.
“Leaders who have signed the manifesto aim to help Africa unleash its full potential catalyse growth through bold investments into infrastructure, people, SMEs and inclusive growth that benefit all the continent’s people.”
De Molli noted that Africa and Italy have a longstanding history, which the Dialogue has deepened. “Through this Manifesto, we aim to strengthen our ties with Africa, while working with African leaders to expand trade, unlock financing and build a vibrant, capable and empowered workforce.”