A US-Africa business summit has ended with a rebuke from the Ugandan president, who said the West was more interested in exploiting than nurturing the resources of the world's poorest continent.
Ugandan President Yoweri Museveni said industrialized countries were wrong to place a higher value on Africa's raw materials than on its 900 million people, who should no longer be considered aid recipients but potential consumers.
"The greatest enemy of business in the world is under-consumption," Museveni told a gathering of hundreds of senior executives from companies like Coca-Cola and Chevron on Friday. "If they were consuming enough you would be much richer than you are now," he said.
Africa was long synonymous with famine, war and corruption; dependent on aid rather than investment. But that is changing. It is experiencing its highest rates of growth and lowest levels of inflation in 30 years and stable democracies have become the norm rather than the exception.
China and India have led the rush for influence and investment in the continent that is both rich in natural resources and offers huge untapped potential in consumer demand, leaving the US scrambling behind.
US Treasury Secretary Henry Paulson said the US-Africa business summit, organized by the Corporate Council on Africa, was proof that international companies realize that Africa is becoming an active player in the global economy.
"Investors see attractive direct, portfolio and equity investment opportunities all across the continent," he said at the closing dinner.
"These results demonstrate the immediate impact of good leadership," he said, adding that African leaders still needed to do more to fight corruption and mismanagement, to increase respect for human rights, and to spread economic progress more widely.
"Africa needs properly regulated and well-functioning financial markets," he said.
This includes legal structures to protect property and investors' rights, he said.
He said research showed that lack of access to finance was one of the biggest constraints on private sector growth in Africa -- less than 20 percent of Africans have a bank account.
He said the telecommunications industry showed Africa's potential. It is the fastest growing mobile phone market in the world, and the penetration level has grown from practically nothing to more than 20 percent in the space of a few years, with more than 200 million cell phones, he said.
A World Bank report on Wednesday said that African economic growth averaged 5.4 percent over the past decade thanks to high commodity and oil prices, which have created booms in oil-producing countries like Nigeria and Angola. About 25 African countries have growth rates of more than 3 percent.
Despite the economic progress and the spread of stable democracies, Africa receives less than 3 percent of global foreign direct investment, and most of this is linked to oil.
Uganda's Museveni said lack of infrastructure remained one of the biggest obstacles to investment. But in a tone symbolic of Africa's growing self-confidence, he said that if Western governments and private companies would not invest in the construction of dams for hydroelectric power, for instance, then Africa would do it alone.
Museveni's economic policies have made Uganda one of the darlings of the West. He has also won acclaim for his insistence on education and training as the key to future prosperity.
But in his speech at the closing dinner, Museveni made it clear that Uganda and other African countries owed the West no favors.
"Africa has been hemorrhaging resources," he said. "It is a misnomer that the West is helping Africa. This is not true."
He said Uganda, the world's fourth biggest coffee exporter, receives US$1 per kilogram of coffee. The beans are roasted and ground in London, and sold for US$20, he said.
"For each 1 kilogram of coffee, we are donating US$19," he said. "We have been doing this for a long time. But we are fighting it. We are going to change."
DECOUPLING? In a sign of deeper US-China technology decoupling, Apple has held initial talks about using Baidu’s generative AI technology in its iPhones, the Wall Street Journal said China has introduced guidelines to phase out US microprocessors from Intel Corp and Advanced Micro Devices Inc (AMD) from government PCs and servers, the Financial Times reported yesterday. The procurement guidance also seeks to sideline Microsoft Corp’s Windows operating system and foreign-made database software in favor of domestic options, the report said. Chinese officials have begun following the guidelines, which were unveiled in December last year, the report said. They order government agencies above the township level to include criteria requiring “safe and reliable” processors and operating systems when making purchases, the newspaper said. The US has been aiming to boost domestic semiconductor
Nvidia Corp earned its US$2.2 trillion market cap by producing artificial intelligence (AI) chips that have become the lifeblood powering the new era of generative AI developers from start-ups to Microsoft Corp, OpenAI and Google parent Alphabet Inc. Almost as important to its hardware is the company’s nearly 20 years’ worth of computer code, which helps make competition with the company nearly impossible. More than 4 million global developers rely on Nvidia’s CUDA software platform to build AI and other apps. Now a coalition of tech companies that includes Qualcomm Inc, Google and Intel Corp plans to loosen Nvidia’s chokehold by going
ENERGY IMPACT: The electricity rate hike is expected to add about NT$4 billion to TSMC’s electricity bill a year and cut its annual earnings per share by about NT$0.154 Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has left its long-term gross margin target unchanged despite the government deciding on Friday to raise electricity rates. One of the heaviest power consuming manufacturers in Taiwan, TSMC said it always respects the government’s energy policy and would continue to operate its fabs by making efforts in energy conservation. The chipmaker said it has left a long-term goal of more than 53 percent in gross margin unchanged. The Ministry of Economic Affairs concluded a power rate evaluation meeting on Friday, announcing electricity tariffs would go up by 11 percent on average to about NT$3.4518 per kilowatt-hour (kWh)
OPENING ADDRESS: The CEO is to give a speech on the future of high-performance computing and artificial intelligence at the trade show’s opening on June 3, TAITRA said Advanced Micro Devices Inc (AMD) chairperson and chief executive officer Lisa Su (蘇姿丰) is to deliver the opening keynote speech at Computex Taipei this year, the event’s organizer said in a statement yesterday. Su is to give a speech on the future of high-performance computing (HPC) in the artificial intelligence (AI) era to open Computex, one of the world’s largest computer and technology trade events, at 9:30am on June 3, the Taiwan External Trade Development Council (TAITRA) said. Su is to explore how AMD and the company’s strategic technology partners are pushing the limits of AI and HPC, from data centers to