Aid vs. Investment

Interesting dynamic at the opening plenary session with official participants focusing exclusively on aid and the private sector participants emphasizing the importance for sustained private investment.

Mo Ibrahim and Naushad Merali, two of Africa's biggest tycoons led the charge on the need for Africa to attract significantly larger flows of private sector investment. Ibrahim pointed out that it was a little known fact that private sector investment in Africa yielded some of the highest returns. So there was a compelling business case for the private sector to maintain and increase investment at this time of crisis, he added.

The call for increasing aid levels was made eloquently by Jeffrey Sachs and South African Finance Minister Trevor Manuel. Sachs pointed out that the US budget deficit was likely to touch 1.75 trillion but there was no commensurate increase in foreign aid commitments. With a tinge of sarcasm, Trevor Manuel said that Africa probably needed to acquire nuclear weapons in order to secure the attention of the international community.

The debate continues this afternoon.