Promising
Prospects for Africa-Canada Trade
Remarks by Hon. David Kilgour, Secretary
of State (Africa and Latin America),
MP Edmonton Southeast,
Africa Direct Reception, Sheraton Suites,
Calgary
May 7, 2000
Excellencies,
distinguished guests and friends:
It’s
a great pleasure to welcome you visitors
to what we residents of Edmonton refer to
as the second city in the best province
of Canada. Welcome too to the second phase
of Africa Direct. Judging from the excellent
participation/enthusiasm in the Ottawa part
of your program. One has the sense that
deal making has already begun. Canadians
have the opportunity to learn more about
the immense opportunities which exist in
African markets. African delegates are exposed
to the realities of the Canadian marketplace
and are meeting potential partners for the
future.
What we are
seeing here tonight, and have witnessed
this past week, is a very tangible demonstration
of what the African Renaissance is all about.
South Africa’s Minister of Foreign
Affairs said recently in a speech to the
South African parliament that economic diplomacy
would be the engine which drives forward
the African renaissance. Africa Direct is
economic diplomacy at its best.
Africa is
now recognized to be one of the last regions
with high economic and social growth potential.
Canadian companies with the foresight to
recognize these opportunities and capitalize
on them will gain a foothold in markets
in countries which are on the road to prosperity.
Canada can make a valuable contribution
as a leading provider of information technology,
manufactured goods, and know-how for resource
extractors. Too few people realize that
half of all mining exploration in Africa
today is carried out by groups which include
Canadian companies. Many of our mining companies
have proved to be valuable joint venture
partners; Canada is a country in which to
raise money for mining projects.
Canadians
are attracted to Africa as an export destination
because of deregulation, privatization of
state owned enterprises, emerging equity
and capital markets, and progressive economic
and political changes in many of 53 capitals.
En Afrique
occidentale, Hydro-Québec International
est le principal partenaire stratégique
dans la privatisation de SENELEC - producteur
d’énergie du Sénégal.
Les sociétés d’ingénieurs-conseils
et les sociétés de services
canadiennes sont très présentes
sur le continent. Plusieurs d’entre
elles travaillent, par exemple, au Projet
de pipeline entre le Tchad et le Cameroun,
que finance la Banque mondiale. Le pétrole
et le gaz, les télécommunications,
la production et la transmission d’électricité,
et le traitement du bois sont tous des secteurs
auxquels participent les entreprises
canadiennes.
Les échanges bilatéraux du
Canada avec la région africaine s’élèvent
à 2 milliards $ par an, et nos exportations
ont doublé entre 1993 et 1998.
Canadian
exports to Sub-Saharan Africa are now greater
than those to the Indian subcontinent or
to Eastern Europe. Our exports to the Southern
African Development Community are substantially
greater than those to the newly independent
states of the former USSR.
The trade
commissioner service of Foreign Affairs
and International Trade supports Canadian
business efforts to expand and deepen market
presence through investments in Sub-Saharan
Africa. As part of Canada’s recently
announced Africa Trade Strategy, Canada-based
staff in Africa have been increased by three
people this year, in addition to the commercial
officer who has been hired in Lagos, Nigeria.
The Export
Development Corporation has been very active
in supporting Canadian exporters and investors.
It is a leader in the structured finance
field, with the ability to apply both project
financing and political risk insurance of
equity and loans. The EDC supported $509
million worth of transactions in 31 African
markets in 1999 - up from $356 million in
1998.
Other organizations
exist to develop long term business linkages
between Canadian and African companies.
The Canadian Alliance for Business in South
Africa is one example; it identifies specific
joint venture partnership opportunities
in South Africa and then works to identify
suitable Canadian partners. In sourcing
annual imports of US$28 billion, South Africa
continues to offer good opportunities for
Canadian companies. Already more than 70
Canadian companies have investments, subsidiaries,
joint ventures, or representation there.
While South
Africa presents itself as the gateway to
the continent, there are a number of emerging
economic lions. Angola, Uganda and Botswana
already stand among the ten fastest growing
economies globally. Of great interest to
Canadian companies is the formation of trading
groupings which encourage economies of scale
and competitive regional industries. Two
important trade deals occurred in 1999 --
an important step forward for the African
Renaissance.
A treaty
signed by Kenya, Tanzania and Uganda (80
million people as a group) outlines the
negotiating terms for a customs union to
be established within four years. Eventually
this union will lead to a common market
and currency styled on the European Union.
The second treaty, a union of eight members
of the West African Economic Monetary Union,
comprising 70 million people has the creation
of a common market as its goal too.
Regional
economic cooperation will not only draw
trade and investment to Africa in the new
century, but it will lead to more fulfilled
lives. All of us here tonight would like
to see trade with a human face, few can
deny that human development and trade go
hand in hand today. Let us build a new partnership
between Africans and Canadians that will
see globalization work to the benefit of
all.
The articulation
of the African Renaissance concept may be
nothing more than the most recent expression
of an idea that has been raised in many
forms, by many African thinkers, over many
decades. But, initiatives such as Africa
Direct help to translate the idea into a
practical program of action. Thank you all
for coming, and helping to turn a dream
into reality.
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