Nigeria next economic giant according to U.S. President Barack Obama

Presidents Goodluck Jonathan and Barack Obama shake hands at the Nuclear Security Summit in Washington in 2010.

Nigeria is the next economic giant American President Barack Obama recently said.

United States President Barack Obama has declared Nigeria as the world’s next economic success story, stressing that this was one of the major reasons why his government was committed to helping the country build strong democratic institutions and remove constraints to trade and investment through the African Growth and Opportunity Act.

Making this declaration at the ongoing US-Nigeria Trade and Investment Forum, an event organised by the Nigerians in Diaspora Organisation (NIDOA) in Washington DC, yesterday, Obama who was represented by Ambassador Eunice Reddick, said that his country expanded opportunities for Nigeria to effectively access markets and diversify its economy beyond a narrow reliance on natural resources.

“As we support these efforts, the Diaspora can play an important role in contributing to a strong, vibrant and economically prosperous Nigeria” he noted.

Obama said his country was investing in Nigeria’s success because it recognises her as a strategic center of gravity, whose success would as well be Africa’s success.

The US leader also made it known that his government would encourage Nigeria in the area of private investment in the power sector as well as other sectors to help seal the promise of growth and opportunity for all Nigerians.

He added that the US government would also work to strengthen Nigeria’s agriculture sector, which employs nearly 70 per cent of the country’s population, by encouraging improvements in infrastructure that would facilitate agricultural growth.

America would help to liberalise Nigeria’s trade policies to foster regional trade, reform the customs system to bring it in line with global best practices, and also encourage policy reforms to enable private investment in agriculture.

Speaking on the US-Nigeria Bi-national agreement, Obama said that the joint Commission has grown into a forum for frank, high-level conversations in which both nations have seen substantial reforms and mutually reinforcing initiatives implemented in Nigeria.

His words: “Some key outcomes of the Bi-national Commission so far have been successful integration of civil society into the electoral process prior to the 2011 elections, sustained and elevated dialogue with energy sector officials on energy policy, reforms to increase investment, and agreement to support the development of a civil affairs training centre in the coming year.”

“Energy and Investment, the subject of one of the four working groups of the Binational Commission, is critical to Nigeria-s present and future”.

I agree that the potential is actually there, the only problem Nigeria has to live up to that potential.  That starts by improving the country’s infrastructure from roads, telecommunications, solving the Niger delta problem and simmering down ethnic and tribal differences among the provinces throughout the nation. The formula is there for great economic success with the right leadership.

In partnership with government of Rwanda, VISA seeks to expand presence

Joining with the government of Rwanda, VISA will try to increase its business interactionthroughout Rwanda.

Visa Inc., seeking to spread cashless commerce in Africa, will unveil Monday a partnership with the government of Rwanda to expand its business in the country.Under the agreement, a partnership with Rwanda’s central bank and a new office in Kigali will allow Visa to process transactions in Rwandan francs. Visa will also expand its network of ATMs and businesses that accept Visa’s cards in Rwanda. In addition, it will train Rwandan officials in financial management, with an eye toward handling payments between the government and its vendors and employees. The government is helping Visa open its office, and invited it to test new services in the country. The agreement aims to get Visa’s cards into the hands of average Rwandans, many of whom don’t have bank accounts. The pact will also help test appetite in the last largely untapped financial services markets in the world: Africa. “We’re doing it in Rwanda in hope of being able to export whatever works to other African countries,” Elizabeth Buse, Visa’s group president for the Asia-Pacific region, Central Europe, the Middle East and Africa said in an interview. Consumer-product companies are stepping up business in Africa, eager to access a budding middle class. Given the continent’s fast growing population, Africa’s middle class could exceed one billion people by 2060, according to the African Development Bank. Visa has partnerships with major hotels and tour operators across sub-Saharan Africa and offices in Kenya, South Africa, and Nigeria. Visa says most of its business in emerging markets like Rwanda is in debit and prepaid transactions, rather than credit, forgoing the need for a credit check to access its services. Meanwhile, MasterCard Inc. has offices in the same three regional powerhouses. MasterCard also allows customers of Airtel Kenya to make payments over their mobile phones without a physical credit card or a bank account. And last month MasterCard struck a deal with the Togo-based Ecobank Group to offer its cards and payment services at the bank’s branches in more than 30 sub-Saharan African countries. “We see the growth potential in these markets for many years,” said Michael Miebach, MasterCard’s president for the Middle East and Africa. Rwanda lost nearly a million lives in a genocidal conflict in 1994, but it is now among Africa’s most dynamic economies. The landlocked country of 11 million people is set to grow 7% this year, well ahead of the 5% growth projected for sub-Saharan Africa, according to a forecast from the International Monetary Fund. The Rwandan government has worked at cutting red-tape for business and attracting foreign investors. “We’re looking for every possible partnership with the private sector,” said John Gara, head of the Rwanda Development Board, a government agency set up to ease foreign investors’ entry into the country.

Traveled to Rwanda and from my first hand experience(s), the number of consumers is definitely growing. With such growth of consumers, credit card companies like Visa have clearly noticed this African emerging market.

U.S. clothing chain the Gap to open stores in South Africa

Famous U.S. clothing chain and brand the Gap to open first stores in South Africa.

Gap Inc. is opening its doors to Africa. On Tuesday, the U.S. clothing chain unveils its first store in South Africa, in a swanky mall here. Another store will open in Cape Town this month, followed by Pretoria, the country’s political capital, later in the year.

Executives see the openings as a steppingstone onto a continent where the average economic growth is faster than 5% and the average age is 19—a nice fit for a chain catering to the young and hip at subluxury prices.

At a launch party Monday night, guests sipped from champagne flutes next to a “Hello South Africa” banner. Models clad in Gap denim worked the crowd while a DJ played techno music. Personal shoppers were on hand to assist consumers.

“The next big market for us is Africa,” Stefan Laban, the head of Gap’s franchise business, said at a rack of pink kids’ leggings at the Sandton-district store. “There is an emerging middle class and more and more tourism here.”

Gap’s expansion in Africa comes as the company is opening outlets in other emerging markets and closing stores in North America. The San Francisco company has struggled in the U.S. and Canada, where the company’s sales fell a combined 5% for the year ended in January. Elsewhere, sales rose 11%. The company opened its first store in Panama in February and plans to expand in Colombia, Uruguay and Peru over the next two years. A Lebanon shop is slated for this year.

Gap is entering South Africa following research that began around when the country hosted the World Cup in 2010. The company opened its first stores in Morocco and Egypt last year. Gap’s shares rose 69 cents, or 2.7%, to $26.08 at 4 p.m. Monday on the New York Stock Exchange, just off their 52-week high.

Gap in South Africa has a partnership with Stuttafords department stores, which have been selling Gap items since 2007. Stuttafords will be Gap’s franchise operator in South Africa.

Mr. Laban said Gap has received inquiries from other prospective operators in Africa but that it will be at least a couple of years before the clothier ventures beyond South Africa, the continent’s largest economy. Nigeria, for example, has a large pool of consumers and a faster-growing economy but lacks South Africa’s mall culture.

Gap isn’t the only clothing retailer moving into South Africa. Spain’s Zara, owned byInditex SA, opened its first South Africa store at the end of last year in the same mall where Gap is making its debut. Luxury retailers Gucci and Cartier also have boutiques in the mall.

Other consumer-goods companies also are seeking to tap a growing middle class, the highest-profile deal being Wal-Mart Stores Inc.’s acquisition last year of a majority stake in South African retailer Massmart Holdings Ltd.

For Monday evening’s party, Gap invited about 200 South Africa trendsetters. Guests sorting through pink skinny jeans and Gap-emblazoned T-shirts were served trays of sushi and, in a country where whiskey is popular among the aspiring middle class, Johnny Walker Black Label.

Gap research indicates that Joburgers favor a relaxed look, company executives said. “Our brand of casual American lifestyle is a good match,” Mr. Laban said.

The trick was finding the right blend of apparel in a reverse climate to that of the Northern Hemisphere. In the Sandton store, shoppers can buy the same spring line that’s on the racks in London or New York but also find pieces from last’s fall’s selection. That pattern will continue, Mr. Laban said.

Gap owns and operates its own stores in several markets, including North America and China. For other regions, including South Africa, it runs a franchises with local partners.

One of South Africa’s disadvantages is high import duties, Mr. Laban said. Since all clothing must be imported, a pair of jeans can be less expensive in the U.S. than in South Africa.

“We will do Gap here first and then think about the next phase,” he said, alluding to the possibility of bringing the company’s other brands, such as Banana Republic.

The investment comes after the Virgin Brand owned by British billionaire Richard Branson intends to open new clubs throughout South Africa. With a growing middle class throughout the continent, the retail sector will gradually expand to meet the growing demand by African consumers. The return on investment is too high to pass up for any company looking to expand, and increase revenue.  Looking to Africa simply makes business sense.

Richard Branson to expand, open new clubs in South Africa

British entrepreneur Richard Branson will open 10 new clubs and invest in South Africa.

British mogul Sir Richard Branson has pledged to invest R1 billion in South Africa’s Virgin Active clubs.  There are currently 98 Virgin branded gyms in the country, some of which will be upgraded, and 10 more clubs will be opened.  Branson, who is visiting South Africa to unveil the Virgin Active gym in Maponya mall, Soweto, heralded the clubs a great success.

“It’s one of the great success stories in Africa and SA, 98 clubs – why couldn’t it be 100 clubs? I think I’ll come back when the 100th club opens,” said Branson.  “We have 10 clubs opening, which is the most we’ve ever had. We will be spending a billion rand over the next twelve months upgrading the current clubs and building new ones. I think as far as Virgin Active is concerned there will be a lot of expansions,” he said. Branson said that it was vital to keep investing, despite a turbulent economic period. “There are always unexpected challenges in business – for example, 9/11 had a hugely negative impact on my airline business and I lost 300 million dollars in a month. There are still opportunities even in difficult times and businesses need to get on their feet and create employment; they can’t depend on government to do it. “Despite the economic crisis we won’t stop investing, that is essential I think. Businesses need to play their part in getting the economy back on track.”

Another indication that investing not just in South Africa but Africa in general will payoff handsomely in the long run.  With a growing middle class with spending and purchasing power, expect more lifestyle clubs, businesses to open to cater to this new crowd.  Like the say, money talks and the African consumer is now being heard by global businesses and brands.

Nigeria to have strong economic growth

Nigeria’s economic outlook for the year looks positive.  Solid growth is forecast for the year.

Nigeria’s economy is expected to grow around 7 per cent this year and next thanks to solid performance in industries outside of its bedrock oil sector, a Reuters poll showed last Thursday. The forecasts, based on a poll of 11 analysts, paint a strikingly positive outlook for Africa’s most populous nation of 140 million people, which has started 2012 on a decidedly shaky footing.

President Goodluck Jonathan was forced to row back on the removal of costly fuel subsidies after a wave of strikes and protests, and Islamist group, Boko Haram has dramatically stepped up a three-year insurgency. The group, whose name means “Western education is sinful” in northern Nigeria’s Hausa language, has killed nearly 1,000 people since 2009, including at least 178 this week in a series of gun and bomb attacks in Kano, Nigeria’s second biggest city.

“The political battle to end the petrol price subsidy in January is in many ways a microcosm of the wider political battle within the political elite over the reform process,” Citibank said in a note.

“Its eventual outcome will be a clear indication of the potential speed with which the current government can implement structural reforms in 2012.” GDP growth in Africa’s most populous nation dipped to 7.4 per cent in the third quarter of 2011, a year earlier, from 7.7 per cent in the second quarter. The government’s forecast for 7.0 per cent in 2011 is in line with  Reuters consensus. Despite the political instability, analysts said the allure of such a huge consumer market will continue to attract investment.

“We expect to see strong growth in Nigeria, bolstered by robust expansion in the non-oil sectors, particularly retail, telecoms and construction,” said Gregan Anderson of London-based risk consultancy, Business Monitor International.

Nigeria has under performed economically last few years.  It has yet to reach its full potential economically given its size and demographics, all which are good solid foundations for growth. Political instability and region tensions among its states, provinces have held back growth and development..  Until Nigeria gets a handle on this, robust growth year after year will be hard to come by.

Easy Jet looking to expand in Africa

Low cost airline East Jet looking to open routes in Africa.

Africa could be about to benefit from a new low-cost airline thanks to a new venture from the founder of easyJet.

Sir Stelios Haji-Ioannou’s EasyGroup has entered into a deal with Rubicon, a British investment firm, to do a feasibility study into the prospect of creating a budget airline for the African market.

The proposal means EasyGroup will be issued shares of 5 percent in Rubicon, with the option to take a further ten percent.

A statement from the Chairman of Rubicon, Robert Burnham, said: “It iproposed that easyGroup will become a shareholder in Rubicon and will use the services of Stelios and easyGroup’s experienced aviation management team to provide general strategic, management and branding advice on the feasibility of implementing a low cost, point-to-point, no frills, all jet aircraft business model for Africa.”

EasyJet, a British airline founded in 1995, services cheap flights across Europe and is renowned for its “cheap and cheerful” image, expanding rapidly since its inception.

Growth in air travel, measured in revenue passenger-kilometers (RPK), has historically outpaced economic growth, represented by GDP, by approximately 1.5 to 2.0 percent. This leads to conclusion that about 60 to 80 percent of air travel growth can be attributed to economic growth, which in turn is driven, in part, by international trade. This is consistent with the observation that countries whose economies are tied to trade tend to have higher rates of air travel. Air travel revenues consistently total about 1 percent of GDP in countries around the world, regardless of the size of the national economy. Globally, air travel has historically trended toward this consistent share of GDP, such that countries that are below or above this level will generally move toward it over the long term.

The remaining 20 to 40 percent of air travel growth results from the stimulation provided by the value travelers place on the speed and convenience that only air travel can offer. For example, travelers value choice of arrival and departure times, routings, nonstop flights, choice of carriers, service class, and fares. Liberalization is the primary driver enabling value creation in the global air transport network. Liberalization typically gives rise to a “bump” in traffic demand. Studies suggest that as the relative openness of a country’s bilateral air service rises from the 20th percentile to the 70th, the resulting increase in traffic can boost air travel demand by an additional 30 percent.

Often, economic growth, induced directly and indirectly by improved air services, creates a virtuous circle that leads to further air transport growth, which in turn leads to added economic growth, and so on.

Nestlé Expands in Africa

Nestlé is making plans to expands in Africa.

Big food companies know they need to reach more African shoppers. But on a continent where many consumers live far from urban areas and roads often are sketchy—at best—the typical multinational corporation’s supply network often falls short.

That’s where Desmond Mugwambane comes in.

Desmond Mugwambane arranges products at a Johannesburg store.

Armed with just taxi money, two cellphones and a briefcase stuffed with order forms, the Nestlé SA sales agent ventures where most salesmen won’t, like Johannesburg’s high-crime Snake Park neighborhood.

“This is where I dig my gold,” he says on a recent sales trip, passing a cow’s head on display at a street butcher.

While Nestlé’s usual sales staff focus on filling shelves of big supermarkets, Mr. Mugwambane and 80 other salespeople like him hunt for tiny shops across South Africa that will buy such Nestlé products as baby food and nondairy creamers, often in single-serving packages that appeal to Africa’s price-sensitive customers.

It’s easy to see why the Swiss food and beverage maker makes the effort.

The African Development Bank estimates that Africa’s middle class, those earning between $4 and $20 a day, will increase to 1.1 billion people by 2060 and account for 42% of the continent’s population. And the International Monetary Fund has forecast economic growth in sub-Saharan Africa at 5.25% this year and 5.75% next year, beating the global average of 4% each year.

Nestlé says it expects 45% of its sales to come from emerging markets by 2020, up from roughly 30% now. Africa is an important part of that growth. Nestlé’s sales on the continent rose 6.4% to 3.3 billion Swiss francs ($3.6 billion) last year, while global sales rose 2% to 109.7 billion francs.

That’s sparked the need for foot soldiers of sales like Mr. Mugwambane—and not just at Nestlé. Kraft Foods Inc. is forming a network of vans to deliver directly to street vendors in South African townships. Samsung Electronics Co. has introduced solar-powered phones in such markets as Kenya and Nigeria, where electricity supply is patchy. AndCoca-Cola Co. says it uses 3,200 distribution points to deliver to small shops in 15 African countries.

Nestlé’s journey into emerging markets hasn’t always been easy.

The company’s milk business in Zimbabwe is grappling with a law requiring that 51% of a foreign company be held by local, black-owned entities. Competition in India prompted Nestlé to pull out of the bottled-water market there. And in the 1970s and ’80s, the company faced a boycott over how it sold infant formula in developing countries. The company says that after that controversy, in 1981 it became the first company to adopt a World Health Organization code for marketing breast-milk substitutes.

Africa still presents challenges. About 61% of the continent’s population of roughly one billion people still lives on less than $2 a day, according to the African Development Bank.

Nevertheless, Nestlé in the past five years has invested $850 million in Africa, building up local manufacturing, expanding distribution networks and developing flavors catering to local tastes.

Some of Nestlé’s experiments, such as using sales agents like Mr. Mugwambane, have shown results. Sales at the type of small stores he sells to rose 20% in August from June. And the number of small stores carrying Nestlé products in South Africa doubled for the first eight months of the year to just under 4,500.

Desmond Mugwambane confirms an order with a convenience store owner in inner-city Johannesburg, South Africa, last month.

“We are halfway where we want to be,” says Dharnesh Gordhon, Nestlé’s sales chief for the country.

Selling some items has been an uphill slog in competition with local products because of the relatively high price of Nestlé’s items. “They are better quality but more price,” says Palash Munna Barua, who runs a shop in Hillbrow, a densely populated Johannesburg neighborhood with a large African immigrant community. Mr. Barua says that when he cuts prices for Nestlé items, like chicory-based Ricoffy, they sell fast.

Around the corner, Hilary Nnaji, the Nigerian owner of Hilvegas Trading, says hehas shelves full of Cerelac baby food, Klim powdered milk and other Nestlé items. After haggling with Mr. Mugwambane, the shopkeeper will receive a $30 discount from his $450 order.

Such negotiations are common. “Here, people argue with me,” says Mr. Mugwambane, who gets a 1% commission from Nestlé. He says that by agreeing to a discount, he hopes to get regular, and bigger, orders.

Small-scale delivery, often on bicycle, accounts for between 30% and 40% of Nestlé’s distribution in Africa, according to Frits van Dijk, the company’s former executive vice president for Asia, Oceania, Africa and the Middle East.

Back in Snake Park, Mr. Mugwambane sells Nestlé baby food to Njomane Drinks Distributors. Four years ago, the shop was essentially a shack. But as spending has increased, Njomane has expanded into a two-room concrete building. Today, the store orders nearly $400 a month in such products as Lactogen infant formula and Maggi bouillon cubes from Mr. Mugwambane.

“Nestlé is becoming popular because of us,” he says.

With about 27 factories strategically located around the continent, Nestle has been able to provide direct employment to around 15,500 people and also offer indirect employment to more than 50,000 people as more farmers were linked with its activities.  The business opportunites for growth are great throughout Africa for Nestle.  With an expanding consumer class, more disposable income will be spent and companies such as Nestle will be in prime position to benefit.

Eni plans to invest $50 billion in offshore Mozambique gas

Eni Spa Italian multinational oil and gas company will begin developing natural gas off Mozambique’s coast.

Eni SpA expects to invest $50 billion developing natural gas off the coast of Mozambique and plans to begin producing fuel there by 2018, Chief Executive Officer Paolo Scaroni said.Italyâ€(TM)s biggest oil company estimates the Mambo deposit to contain 20 trillion cubic feet of gas, he said today in Doha, Qatar. Eni may transport the gas to market through a pipeline or by converting it into liquefied natural gas and shipping it to Asia. The producer may also sell the fuel locally in the form of compressed natural gas, Scaroni said. Eni announced the fieldâ€(TM)s discovery in October.“Our feeling is it would be a super-giant gas field and is well-placed to supply Asia by LNG,” he said at the World Petroleum Congress in Doha. Europe isnâ€(TM)t a likely destination for any gas from Mambo, Scaroni said.Eni, Anadarko Petroleum Corp. and BG Group Plc together with partners have found trillions of cubic feet of gas in waters off East Africa. The deposits are large enough to justify construction of at least eight LNG production trains, according to estimates by the companies. The producers may ship African gas to Asia and compete with fuel from Australia, where Royal Dutch Shell Plc, Chevron Corp. and other companies plan to invest about $250 billion in gas projects.

Mozambique holding large, vast amounts of gas has the  potential to bring  large scale gas development with a combination of both export to regional and international markets through LNG and supply to the domestic market.  This is great news for Mozambique, as such discoveries of energy will continue to spur meaningful investment in the region, generate significant revenue for the government and offer a multitude of opportunities for the people of Mozambique. Should the projects be developed, Mozambique will able to transship its output to two of the world’s top liquefied natural gas markets, Japan and South Korea, along with being in a prime position to service other rapidly emerging Asian gas markets, such as China and India.

The investment comes at a positive time looking at the context of economic and commercial relations between Italy and Mozambique. This is evident in trade figures between both countries.  According to ICE data, Italian sales to Mozambique have nearly tripled over the past 3 years, the first 5 months of 2011 registered a 13.1% growth in exports from  $15.5 to 17.6 million and 45.8% in imports from €135..5 to 202.6 million compared with the same period in 2010.  With trade expansion between both countries and investments, if managed right, Mozambique has a good chance of having good sustained economic growth and development.

Qatar to invest $10 billion in Egypt

Qatar has pledged to invest $10 billion in Egypt.

Qatar has pledged to invest US$10 billion in Egypt, a country with which it had strained relations under ousted president Hosni Mubarak, a minister was quoted as saying on Saturday.

Egypt’s Minister of Planning and International Cooperation, Fayza Abu el-Naga

Egypt’s Minister of Planning and International Cooperation, Fayza Abu el-Naga, said the Egyptian-Qatari ministerial committee met on Saturday and ‘discussed ways to promote Qatari investment in Egypt,’ the official MENA news agency reported.
It said the investments were expected to be in sectors including tourism, housing, oil, transport, agriculture, education, health and justice.  “These projects are part of the 10 billion dollars pledged by the Emir of Qatar, Sheikh Ahmad bin Khalifa al-Thani,” Naga was quoted as saying by MENA.
During a visit to Egypt in May, the emir had assured Egyptian Field Marshal Hussein Tantawi of “increasing Qatari investment in Egypt,” it added.

Tantawi is the head of the Supreme Council of the Armed Forces, which has ruled Egypt since the February 11 ouster of president Hosni Mubarak in a popular uprising.  Qatar, which had strained relations with Mubarak, is among the first countries to support the new government.

Egypt has been particularly hit by falling tourist arrivals and near zero economic growth after the revolt against Mubarak and the chaos which accompanied it.
In a bid to encourage democracy in countries such as Egypt and Tunisia, the G8 on Friday promised a package of US$40 billion for Arab countries.

Due to the recent political turmoil and developments, Egypt needs all the investment that it can get. This is a move by Qatar to position itself on the good side of the Egyptian leadership after the transition of former President Mubarak. While under Mubarak, Egypt was annoyed by Qatar’s attempts to project an image of being an equal key regional player of the same weight. This was evident when Qatar decided to mediate talks between between the Sudanese government and Darfur rebels, and by calling for an extraordinary summit in Doha during the Israeli war on Gaza to which the Iranian president was invited. Under both instances, Qatar was viewed by the Egyptians treading on their turf on issues that have been of  particular concern to Egypt.

Malaysia seeks to tap African market

Malaysia following the foot steps of other Asian nations, seeks to increase its economic presence in Africa.

Malaysia is the latest nation seeking to tap into the African continent’s massive economic potential – following the success of countries such as China and India. Speaking prior to the launch of the Langkawi International Dialogue (LID) on 19th June 2011, Malaysian Deputy Prime Minister Tan Sri Muhyiddin Yassin, described Malaysia and Africa as “natural partners” due to their abundance of natural resources and their relatively young population. “It is thus only natural that we work together to build on the opportunities and potential available,” he said. In 2010, trade between Malaysia and Africa stood at US$8.2 billion, a 39 percent increase from the previous year. However, trade and investment levels between the two regions remain relatively “untapped” with further partnerships and bilateral cooperation required. “There are tremendous opportunities for Malaysia. We need to explore the various opportunities” said Malaysia’s Deputy Foreign Minister Kohilan Pillay. Malaysian Deputy Prime Minister Tan Sri Muhyiddin Yassin also expressed his disappointment at the present lack of economic activity between Malaysia and Africa while emphasising the enormous potential that Malaysia could potentially tap into with the African market, “Contrast this with the US$12 billion trade Malaysia had with Germany last year, a country one per cent the size of Africa. These figures speak for themselves. As such I urge you (Malaysian investors) to be proactive.” Former Malaysian Prime Minister Dr. Mahatir Mohamad believes that the LID will open up new avenues for Malaysia in Africa. “After the dialogue, Malaysia would have a higher visibility in the African market and Malaysian businesses could expect to do better there.” The LID was the brainchild of Dr. Mahatir and aims to bring together leaders of developing economies from Africa and the Caribbean in order to discuss and promote economic collaboration. More than 500 delegates from 15 African and Caribbean countries are attending the event that is seen as an important outreach program for Malaysia to Africa. According to Malaysian Deputy Prime Minister Tan Sri Muhyiddin Yassin, the move would help build sustainable economic prosperity by synergising Malaysia-Africa business partnerships. However, the event has also met up with criticism over the attendance of Zimbabwean President Robert Mugabe as well as Malaysia’s invitations to other controversial African leaders such as Sudan’s Omar al-Bashir. Malaysia’s Prime Minister Datuk Seri Najib Tun Razak has deflected the criticism by citing that Malaysia was not yet a member of the Rome Statute of the International Criminal Court (ICC) and therefore did not break any international laws by inviting Omar Al-Bashir.

Africa is prime opportunity for Malaysia to look for growth. South Korea, India, Japan and of course China have made moves to tap the growing and expanding African market.