United Nations Radio

Africa has made encouraging progress in the mobilization of international capital flows to the continent.

(photo).

Speaking on behalf of the African Union Saturday, President Kikwete told the meeting on financing for development that because Africa implemented economic reforms and policies favourable to private investments, foreign direct investment inflows to the continent increased from US$13 billion in 2002 to US$45 billion on 2007.

However, he says this is too little a share of global investment amounting to only about 2 per cent.

And,...he adds, most of that investment or FDI as it is called, is concentrated in the extractive sector - such as diamonds and other minerals and in a few oil-producing countries on the continent:

"Our challenge in Africa therefore, is about how to attract more FDI's in more sectors other than the extractive sectors particularly in the sectors which have high value-addition as well as high potential for job creation. At the same time, they should be environmentally friendly. Africa can also benefit from harnessing remittances from abroad. A number of African countries are doing that by making it easier for people to use the banking system and other formal channels to receive remittances from abroad. We call upon the developed countries to take action to reduce the transaction costs of remitting money to Africa."

President Kikwete says while Africa has done all it can to implement the Monterrey Consensus, the performance of developed countries to meet their commitments remains wanting.

This is Donn Bobb reporting for United Nations Radio, Doha.

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