Tag Archives: investment

The Trillion-Dollar Question: Financing the Sustainable Development Goals


After years of consultation, discussion, and debate, the sustainable development goals (SDGs) that will guide development efforts for the foreseeable future are close to becoming a reality — meaning a global commitment to end poverty in all its forms everywhere and eliminating extreme poverty entirely by 2030. But one crucial question remains: how to pay for it all?

The Financing for Development (FfD) conference met in Addis Ababa, Ethiopia earlier this month to try to reach an agreement on the right mix of development aid, taxes, loans, trade, and private investment to pay for the ambitious agenda set out in the SDGs, building on the failures and successes of the previous Monterrey Consensus and Doha Declaration.

Following the FfD conference, the Center for International Private Enterprise’s (CIPE) convened a panel of experts to reflect on the new SDG financing framework and outline important steps leading up to the summit in September where 193 heads of state will converge to ratify the goals.

Hosted by CIPE Executive Director John D. Sullivan, the panel featured Trevor Davies of KPMG, Christopher Jurgens of the United States Agency for International Development (USAID), Louise Kantrow of the International Chamber of Commerce (ICC), Kamran M. Khan of Millennium Challenge Corporation (MCC), and Sarah Thorn of Walmart.

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Are Remittances Really Remiss?

Remittances in Somalia

By Otito Greg-Obi

It is a popular opinion in the international development community that remittances – money transferred by a foreign worker back to someone in his or her home country – can have a negative effect on economic growth because recipients tend to spend cash flows on day-to-day subsistence. However, research shows that the opposite is true. A study on the effect of remittances on growth in Africa reveals that remittances seem to have an overall positive effect on Gross Domestic Product (GDP). When compared to foreign aid and Foreign Direct Investment (FDI), a 10 percent increase in remittances leads to a 0.3 percent increase in the GDP per capita income.

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Property Markets, the Rule of Law, and Real Estate Investment


Real estate investors are attracted to the United States because its strong legal system protects their investment and because of the easy availability of accurate information. (Photo: Wikimedia Commons)

I recently participated in George Washington University’s 2015 Global Real Estate Conference in New York. Having been invited to share CIPE’s work developing the International Property Markets Scorecard at the International Real Estate Federation’s (FIABCI-USA) annual meeting, which dove-tailed with the conference, I took the opportunity to educate myself on the current happenings in the real estate field and see how CIPE’s work might resonate with the professionals most connected to international investment in property.

Headliners at the conference included international representatives from such prominent companies as Morgan Stanley, CBRE, Knight Frank, and Cushman & Wakefield. Mostly I learned a great deal of “inside baseball” language and can now boast a broader vocabulary, but there was another theme that kept coming up. Whether talking about mitigating risk, conducting valuation of property, or trying to determining capitalization rates, it all came down to the need for reliable information and a stable environment that allows for confident investing.

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Who Will Reap the Benefits of China’s Growing Presence in Africa?

By Brian Jackson

Recently, there have been many articles in the media outlining both the positive and negative implications of China’s growing investment in Africa. On one hand, many accuse China of promoting another period of colonization and exploitation on the continent and preventing Africa from becoming economically independent. Yet on the other hand, some praise the investments for rejuvenating African industries and infrastructure.

With such conflicting interpretations, many are left wondering how to view all of this. Is Chinese involvement in Africa a good thing, or bad thing? Will it lead to more economic and democratic opportunities for the continent and people, or the opposite?

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Harnessing Markets to Reduce Extreme Poverty


When “3 billion people on the planet making less than $3 a day, [are] effectively cut out of society, we are missing the opportunity of all those people to be our musicians, our Einsteins, and our professors- it is really all of us that lose.”

In an event on harnessing the power of markets to tackle global poverty, American Enterprise Institute President Arthur Brooks and Acumen founder and CEO Jacqueline Novogratz highlighted the role markets can play in enabling the poor to participate fully in society.

By treating the poor “as assets to society,” rather than liabilities, “we’re going to enliven their capital and that will also give them earned success and dignity,” said Brooks. Novogratz’s philosophy is to do just that – by investing in the poor through so-called “patient capital.”

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The Future of the U.S.-Africa Economic Relationship


Last week Washington hosted nearly 50 African heads of state at the first-ever U.S.-Africa Leaders Summit. Countless meetings and conversations that took place not just among government officials but businesses, international organizations, and non-profits (including CIPE and Freedom House) brought Africa into the spotlight. Yet the most important aspect of the Summit is still ahead: what did we learn and how can this knowledge guide the way forward?

One of the most informative outcomes of the Summit to me was the launch of a report Africa and the United States: A defining relationship of the 21st century at the U.S. Chamber of Commerce’s Presidential Plenary. The report was jointly produces by the U.S. Chamber and Investec Asset Management (IAM), a global investment management firm founded in 1991 in South Africa. Hendrik du Toit, Investec’s CEO, unveiled the report and discussed its findings with a panel of corporate leaders.

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The Role of Business in Advancing Political and Economic Freedom in Africa


This week nearly 50 heads of state will attend President Obama’s U.S.-Africa Leaders Summit in Washington, DC to discuss trade and investment, security, democratic development, and how to achieve a better quality of life for all Africans. The summit will bring together government representatives, business people from the U.S. and Africa, and leaders of civil society groups.

In many ways this summit will be the beginning of a hopefully much larger conversation on how the United States and 54 African countries can increase economic ties, strengthen democratic development, and create new economic opportunities and freedoms for Africans.

To help start this conversation, CIPE and Freedom House brought together several U.S. and African thought leaders to offer their insights on how to advance political and economic freedom in Africa at an event August 1. The purpose of the event was to reinforce the case that good governance and democratic values are closely linked to sustained economic growth, and to offer some actionable ideas on how to strengthen the U.S.-Africa partnership.

The panelists included: Kim Davis, Managing Director and Co-Chairman at Charlesbank, Hon. Donald Gips, Co-Chairman of the U.S. Chamber of Commerce Africa Business Initiative, Betty Maina, Chief Executive of the Kenya Association of Manufacturers (KAM), and Aniket Shah, Global Investment Strategist from Investec.

As Hon. Gips mentioned, many American firms are not even at the “starting line” with regards to expanding their business into Africa. There is no doubt that there are plenty of opportunities and that different countries on the continent are experiencing economic growth and a growing middle class of consumers that offer both African and international companies new opportunities to expand their markets. But for many reasons, few U.S. firms outside of the extractive industries are investing in Africa.

At the same time, Freedom House’s Freedom in the World Index shows that many African countries are not advancing political and economic freedoms, and in some parts of Africa are reversing previous gains. As Betty Maina from KAM pointed out, after the fall of the Berlin Wall there was a great promise “for a better life and democratic opportunity,” but Africans have not built the underlying institutions necessary for democracy to succeed – instead focusing almost solely on conducting elections.

“There is currently a despair about democracy and the fundamental ingredient to change this is the building of proper institutions,” Maina said.  As former Ambassador to South Africa, Hon. Gips, put it: “the hard part is what comes after the elections.”

So what can the business community do about the current state of affairs? Kim Davis emphasized that business has a deep interest in the rule of law. African countries need judiciary systems that work and business climates where contracts can be enforced. Keeping the system accountable requires freedom of the press, and African businesses need to push for greater press freedoms.

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