Teamwork wins the day in Africa

Sub-Saharan Africa is the only region that, at current rates, will not meet any of the Millennium Development Goals (MDGs) by 2015. Of those employed in the region, 55 per cent do not earn enough to lift themselves and their families above the $1 a day poverty line.

Few would argue that providing a decent chance in life, basic education and healthcare should not be an important international priority. But what is the relevance of business to the MDGs? Surveys of businesses suggest that they see the UN or donor governments as most responsible for delivering the MDGs, with almost a quarter knowing nothing at all about them. Yet, in reality, it is national governments and businesses in Africa that have both the prime responsibility and the capability of delivering on the MDGs.

Whilst philanthropy is important, the most significant way business can contribute to the MDGs is through generating jobs, paying taxes, opening up supply chains and creating stronger linkages with local economies. It is this that will cause the type of growth than can deliver a significant social impact. Getting the fundamentals right to create sustainable economic growth is the most critical factor in delivering the MDGs and enterprise is the foundation for this.

Consequently, we must do all in our power to liberate the energies of Africa’s entrepreneurs Ñ men and women, farmers, traders, small and medium enterprises (SMEs) and larger companies. Without this, governments will never be able to pay for public services and aid will be a revolving door that keeps spinning Ñ the jobs and income needed to support the young and growing population will never be created and the MDGs will remain targets.

Business can play a catalytic role in partnership with governments in improving the conditions for doing business and tackling development needs. To realise this will require that business is built more systematically into economic planning and prioritising, and change a paradigm where business perspectives are marginalised, or sought when plans are already fixed. Rio Tinto’s work with the government of Madagascar is an excellent example of such a partnership.

More can be done to quickly learn from and scale up successful public-private partnership models. There is a need for governments and policy makers to match their requests for the private sector to ‘up its game’ with their own concrete action and policies to improve the climate for business, specifically around improved governance, measures to improve the investment climate and support SMEs.

SMEs are a major source of new jobs and large companies can do a great deal to support them through their supply chain management, and develop the skills and knowledge required for their expansion. From Rio Tinto’s own experience, planning investment in a way that acknowledges this can pay big dividends, as our experience of significantly raising the level of local procurement of our operations in Ba-Phalaborwa in South Africa demonstrates.

As economic actors, business leaders have a voice in public debate. We need to emphasise how important it is that the international community addresses its failure to meet commitments on aid.

Improvements in governance and transparency/accountability in sub-Saharan Africa are critical too. A free press is central to achieving this. Africa’s media is more competent and confident than ever. In the Africa Media Initiative, Africa’s media owners, journalists and media organisations have come together to set up a continent-wide investment programme to promote and support the independent media.

Another business contribution to improving transparency/accountability is Business Action Against Corruption, an innovative joint campaign that brings the skills and resources of business leaders to work with governments in tackling corruption. Businesses are helping work towards removing barriers to intra-Africa trade through the work being done by the Business Action for Improving Customs Administration (BAFICA), tackling one of the key obstacles to African competitiveness.

In relation to the food and nutrition crisis in Africa, the G8 and donors need to address the very low investment in nutrition and agricultural development. Undernutrition affects the majority of Africans, reducing productivity and retarding economic growth by between one and two per cent every year.

The international community must back the efforts of business and UN agencies within the Global Alliance for Improved Nutrition (GAIN), to support the AU/NEPAD Comprehensive African Agriculture Development Programme (CAADP) and to invest in private sector led strategies to combat undernutrition, including the proposed food security safety net to protect the 400 million most vulnerable Africans, especially children.

It is important to recognise what has been achieved, rather than only focus on what still needs to be done. Although sub-Saharan Africa is lagging behind in meeting the MDGs overall, there are clear signs that in many countries long-term problems are beginning to be addressed and overcome — sustained economic growth and the levelling off of the incidence of HIV/AIDS in some countries, for example. This sense of confidence that problems can be managed and overcome injects renewed momentum and energy towards achieving the MDGs by 2015.

Working together, business and governments have the potential to achieve the MDGs in sub-Saharan Africa. At Rio Tinto, we are committed to playing our role and working with others to help them play their full part too.