View Africa through different lens to spur economic growth

The CNN reporter’s attempt to discredit Kenya by terming it a “hotbed of terror” at the height of US President Barack Obama’s historic visit to the country – though surprising to many locals filled with excitement over the “homecoming of their son” – was not uncharacteristic of the Western media’s view of Africa.

The damaging label came at the exact time the entire world was watching Kenya, dealing a big blow to the country’s image.

Africa has been misrepresented using every manner of negative labels: corrupt, poor, insecure, hungry, conflict-ridden, diseased, illiterate, unskilled and poorly governed.

Ironic, though, is the fact that the same continent is home to six among the globe’s fastest growing economies.

Indeed, it cannot be denied that African nations are grappling with serious challenges. The fact is, however, that every country and region in the world is grappling with its own set of problems.

One by one, beginning with the not quite ended recession in the US, the continuing debt crisis in the Eurozone, the recent plummeting of Chinese markets, the on-going decline in Brazil’s economy, the major currency devaluations and drop in equity prices all around the world; all are pressing problems.

Still, Africa continues to receive a disproportionate amount of negative focus from the rest of the world for its problems in comparison to the focus it deserves for the pivotal role it has so relentlessly played in the global economy.

Such focus is triggered by misrepresentation from international media and other influencers of opinions.

It is these preconceived notions that have been so loosely applied alongside the definition of Africa as a whole that are behind the continents slow rate of contribution to the world economy.

It is an indisputable certainty that in the global economic equation, Africa collectively is where the promise of global prosperity lies. And it all begins with a changing mindset.

The rest of the world needs to view Africa through a different lens from what it is used to, if Africa is to deliver upon its promise of catalysing global economic prosperity.

Even when these notions and labels are not expressly negative or derogatory, there are outdated and misrepresent the way in which Africa really fits into the global economic system.

For instance, Africa has long been referred to as the final/last frontier. To the undiscerning investors, this can very well be misunderstood to mean that Africa is an investment destination of last resort, when all else is said and done.

This is a view that would need to shift radically. It is time to buy into Africa as the place new investments should head first and not the last. A change in such a view can dramatically impact the amount of investment that is destined for Africa.

Another long perpetrated but equally misleading view is that Africa is the source of raw materials that will then feed into a more sophisticated supply chain in a more ideal processing location.

Once again this impacts greatly on the levels of participation and investment that the rest of the world is willing to commit into Africa and with it jobs, technology transfer and know-how.

But perhaps the biggest misunderstanding about Africa is that, because it has been labelled an emerging market, it is to be treated as just that; a market place.

A negative impact of this is that manufacturers continue to exit certain locations in search of higher margins leaving those locations as purely sales and distribution centres. To shrink jobs has the likely long term effect of also shrinking the market.

If Africa is to rise to its real potential to impact the global economy, a more balanced view of it is necessary. The African continent may no longer be viewed from the “go and fetch from” perspective.

Its position in the global economic arena should not be skewed towards what can be taken, tapped or captured from it.

Getting into Africa for the sole purpose of increasing footprint, securing raw material and commodities, exploiting the cheap labour, and capturing its markets is ill informed and sure to create imbalance in the global economy that will erase any small gains made.

To consider Africa as unexploited territory to expand into when all other territories have been saturated (read-last frontier) simply won’t cut it either.

Africa needs to be approached in a very balanced way so that in turn, it can be able to bring balance to the global economy.

Inclusion of Africa means partnering with it to take up the opportunities it offers to expand the global economy, taking care that it wins big along the way. It is not about operating in Africa but co-operation with it.

Not once will one come across questions about China’s role in Africa’s growth particularly as pertains to their massive investment in infrastructure. 

The relationship between China and Africa has been viewed suspiciously by many. Popular opinion which I wholly subscribe to is that those questioning China’s significant involvement in Africa are extremely short sighted.

Being part of building Africa, even when it is a debt arrangement, should not be treated with suspicion. It is taking a long-term positive view not only of Africa but of the entire global economy. It comes from a place of understanding this.

With ambitious growth statistics coming out of Africa and armed with a renewed mindset, it is up to the rest of the world not just to mount short term speculative views around these forecasts, but rather to plan to participate fully and for the long haul by allocating significant assets and investment.

This means that focus should be less on making and moving massive profits out of Africa and more re-investing and growing with it sustainably.

This means an overhaul in the tax and repatriation mindset. Starving host African countries of tax revenues should be a thing of the past considering the grand scheme of things to come.

Ms Mugo is a Mombasa-based finance professional. [email protected].