Africa Rising

We're back from Europe. The final stop in London went well, despite the heavy snowfall.

I wanted to take a moment to point out an article that prominent Oxford academic Paul Collier, author of "The Bottom Billion," and one of speakers at the "Changes" conference, has co-written (along with Jean-Louis Warnholz) in the Harvard Business Review about investing in Africa.

Collier argues that "reliable data" show that a number of sub-Saharan African countries have emerged from conflict in a stable condition and that new macroeconomic forces are poised to have a profound effect-despite the global economic downturn. This is broadly the theme and objective of the IMF and Tanzania government-sponsored conference in Dar es Salaam on March 10 & 11.

When he speaks in Dar es Salaam, expect Collier to elaborate on this and on what African nations need to do to sustain and build on their recent economic success.

Making a pitch for increased private sector investment in Africa, Collier and Warnholz point out that their research on African companies indicate that the continent offers competitive manufacturing sites, IT outsourcing, and construction services. "There is real opportunity on the ground in Africa," they write, and offer three cogent reasons why MNCs and investors should bear these developments in mind. The reasons:"

• Positive macroeconomic policies pursued by many African nations and political stability;
• Favorable policies by developed nations that have helped boost African exports, increased profitability;
• Increased profitability of African companies, with higher profit margins compared with India, China, and Vietnamese firms.

Collier and Warnholz conclude: "Years have passed since investors updated their view of Africa’s promise. The time is ripe for multinationals to rethink sub-Saharan opportunities and simultaneously to help the region achieve its promise by contributing much- needed capital, business skills, and global connections