Press Release
17 November 2005
Africa opening for business: Prime Minister confirms UK support for Africa's
Investment Climate Facility (ICF)
The UK today became the first country to make a financial commitment to a new
facility designed to help lower the cost of doing business in Africa and promote
a better investment climate across the continent.
Prime Minister Tony Blair and International Development Secretary Hilary Benn
confirmed that the UK government will provide $30 million over three years to
the Investment Climate Facility for Africa. Royal Dutch Shell plc and Shell
Foundation also announced that they would contribute a combined total of $2.5
million over five years, and Anglo American confirmed that they would also
contribute $2.5 million over the same period.
The Prime Minister said:
"Africa has started to make great strides in
reforming its business environment, but deeper and wider reform is needed, if it
is to take full advantage of the opening up of global trade markets. The ICF
will help. It will make Africa a better place to do business. The UK's $30
million contribution is our share to help get the Facility up and running. It is
time for all in the international community and the private sector to get behind
this African initiative and give it maximum support."
Hilary Benn, the International Development Secretary, said:
"If Africa
is to achieve the 7% growth necessary to meet the key MDG of halving the number
of people in poverty by 2015, the business environment must improve. Businesses
face many obstacles in Africa. Many are real problems - excessive regulation,
corruption or anti-competitive practices. Then there is the perception that
Africa's security, health and infrastructure problems mean it is a poor place to
do business. The ICF's activities will address both the real and perceived
obstacles. It will be vital for investment, growth, jobs and sustainable poverty
reduction in Africa."
The ICF will help bring about more business friendly policies, laws and
regulations across the continent, and strengthen the institutions that enable
these to be administered. It will help bring about a more effective dialogue on
investment climate reform between governments and the business community.
The ICF will support projects such as streamlining business registration and
licensing systems, reforming customs administration and taxation and removing
barriers to competition. It will learn from and build on earlier success
stories, for example a successful pilot programme in Entebbe which led to
Ugandan entrepreneurs needing just 30 minutes, as opposed to 2 days, to register
a business, or in Mozambique, a customs reform programme which has meant that
goods are now cleared up to 40 times faster than pre-reform. It will not finance
commercial ventures or hard infrastructure.
The ICF was recommended by the Commission for Africa and supported by the G8
at Gleneagles.
Notes to Editors:
1. The ICF will be a public private partnership, funded by companies,
bilateral and multilateral donors, and working in close partnership with African
governments and regional organisations such as NEPAD.
2. The ICF is expected to be launched in Africa and become fully operational
in mid-2006, once other donors and companies have also made their commitments.
3. The ICF has a limited lifespan of seven years. It aims to raise US$120m
for its first three years of operations. It is being established, in Africa, as
an independent Trust, and will be governed by a Board of Trustees (the majority
of whom will be African).
4. Tony Trahar, Chief Executive of Anglo American plc announced the company's
funding of $2.5m towards the ICF, and Jeroen van der Veer, the Chief Executive
of Royal Dutch Shell plc, announced that Royal Dutch Shell plc and Shell
Foundation will between them contribute funding of $2.5m towards the ICF.
Contact: Bernadette Cunnane or Kurt Hoffman, Shell Foundation (020 7934 2713),
Edward Bickham, Anglo American (020 7968 8547).
5. Niall FitzGerald KBE, Chairman of Reuters and co-Chair Elect of the ICF,
also participated in the event on behalf of the ICF. He can be contacted on 020
7542 2485.
6. For further information, please contact DFID Press Office 020 7023 0600 or
Chris Darroll, Executive Director of SBP (ICF's Interim Principal Agent) +27 11
486 0797.
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