the rising africa january 2013

THE RISING AFRICA MAGAZINE /// 00

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Editorial

Foundation BDA Trains the Next Generation of Congolese Green Entrepreneurs

New Canadian Ambassadors in Africa

Reducing Poverty - Building Tomorrows Markets

Canada 6 Largest Donor at the AfDB

Africa Is Not a Monolithic Entity

Raising the Bar for Doing Business in Tanzania

Discovering Opportunities in Rwanda

The Power of Alliances

The Limitations of CSR

The Balancing Act of Canadian Mining in Africa

Africa and the Government of Quebec

ITS TIME FOR AFRICA - The New Investment Destination

The Launch of the Rising Africa in Montreal

Nigeria Frontier Emerging Market

Brazil in Africa

Playing Catch Up With China in Africa

Gov. Efficiency Through the Lens of the Postal Service

Factual Data on Land Grabs

Co-operative Movement For a Greater Good

Dundee Capital Markets

Member News

Missions and Events

Resource Guide

CCAfricas 10 Anniversary Gala and Symposium

CCAfrica Member List

4 Ps of Africa

12

IN THIS ISSUE OFThe Canadian Council on Africa Magazine, Winter 2013, Issue 3

The Rising Africa Team

Lucien BradetPresident, CEO

CCAfrica OttawaChris Kianza

Vice President, Business Development and Member

RelationsCCAfrica Ottawa

Marje AksliEditor-in-Chief

CCAfrica OttawaKarl Hasenhuendl

Graphic DesignerCCAfrica OttawaLonie Perron

Project ManagerCCAfrica Montral

Dawit HailuEditor

CCAfrica OttawaKadidia Moussolo

TranslatorCCAfrica Ottawa

Yacine Sawadogo Translator

CCAfrica MontralYola Mathieu-Kon

TranslatorCCAfrica Montral

Copyright 2012 CCAfrica All rights to the pictures and articles within belong to CCAfrica and its members.

Please contact our head of marketing and publications Chris Kianza for more details on how to get your advertisement in our next issue.

VIEW OUR DIGITAL EDITION ONLINE AT WWW.CCAFRICA.CA FOR ADDITIONAL CONTENT

CONNECT WITH US USING SOCIAL MEDIA

The new Chair of the Board of Directors for the Canadian

Council on Africa

A WARM Handshake with Prime MinisterHarper in Senegal

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Benoit La Salle

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7 Questions to the Canadian CSR Councellor

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ear Reader, Let me for a second assume

that you have never heard of The Canadian Council on

Africa before. Since the current edition of The Rising Africa is distributed in Cape Town, South Africa, as well, chances are you do not know what we do. If this is the case, allow me to give you a 30-second elevator pitch about our organisation:

Our member-based NGO is a common sense organisation for Africa in Canada. We work on what I call the realistic situation in Africa. We do not dream, we do not preach, we do not wag fingers or whine.

We make every effort to give a reality check on Africa for our members but also for the general public. We work with diverse peoples, organisations and companies working in all African countries in realistic situations.

We wish to connect the policy makers and the Canadian boots of the ground, be these mining companies, colleges and universities or infrastructure companies, for mutual benefits. We also wish to include African diasporas into the dialogue with Canadian leaders, allowing their voice to

be heard and their skills and knowledge to boost Canadian trade with Africa.

We, in The Canadian Council on Africa, are convinced that the next step towards further development in Africa cannot be achieved with aid alone. Africa needs innovative development financing models. It needs trade, investments and business, as well. This is what the African ambassadors in Ottawa have repeatedly told me. But naturally, Canadas policy towards Africa should be based on a win-win relationship; it cannot be achieved at the expense of Africans well-being.

We welcome Canadian International Development Agencys initiative to include the private sector to the development issues. As you see on the quote below, the Canadian minister of International Co-operation Julian Fantino recognised the rapidly evolving global context and announced that by reducing poverty Canada will help building tomorrows markets.

We agree with the honourable minister that we are operating in a new world of development. He pointed rightfully out that while Canada provided five billion dollars in development assistance last year, the FDI outpaces aid at a rate of five to one. Moreover, he stressed, remittances from Canada to developing countries exceeded CIDAs total aid program three times. Further, a couple of years ago, he revealed Canadas private donations to developing countries were around two billion dollars.

While discussing CIDAs Economic Growth Strategy and the opportunities in foreign markets for Canadian organisations, the minister singled the extractive industry out as a key partner.

Why the mining sector, many asked in Canada. As Pierre Boivin, a member of CCAfricas Board of Directors claims in this edition: Canada has what Africa needs right now, using an eloquent hand-and-glove metaphor. We have skills in mining, which can be passed on to African specialists, to allow the necessary manufacturing and service industry to follow.

For example, you can read what our Chair of the Board, Benoit La Salle says about the way he, a gold mine owner in Burkina Faso, approaches mining. Despite what many scholars and activists generalise about mining in Africa, there are no human rights violations; there is no violence or ecological degradation in his mine. Instead, by using bottom-up approach his mine has made it possible for the several agricultural supply chains being created around the mining facility. While the mine only employs roughly 2000 people, more than ten times more people work in the local small businesses which have sprouted around the mine. Working along the lines of Millennium Development Goals, the mine has contributed to the rise of school enrolments from 20% to 80%, while the average grade of students is higher than the national average.

Would you call it Corporate Social Responsibility? Or is it sustainable economic development, instead? Personally, I would call it responsible Canadian business in Africa. CCAfrica and its members are committed to this approach.

Lucien Bradet President and CEO

The fact is developing countries are using natural resources - more and more - as a key economic driver to create jobs and provide governments with revenue to deliver services. In 2008 alone, exports of oil and minerals from Africa, Asia, and Central and South America were worth about $1 trillionnine times the value of international development assistance to these regions. Trends show that this will only increase. This is why it is important that extractive industries work in a way that benefits everyone involved. And this is why CIDA will continue to work with the sector.The Honourable Julian Fantino, Minister of International Cooperation for The Economic Club of Canada Reducing Poverty Building Tomorrows MarketsNovember 23, 2012, Toronto, Ontario

Step in Canada-Africa RelationsEditorial:Taking the Next

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he biodiversity of the African continent and especially that of the Congo River Basin Forest is exceptionally rich.

Properly grown and harvested, value-added plants (also known as botanicals) can be packaged and marketed to meet the needs of international markets of the biopharmaceutical, cosmetics and nutraceutical industries, as well as to supply international organizations and institutions responsible for the fight against food insecurity. (Nutraceuticals are food products that provide health and medical benefits.)

Becoming competent business leader in controlling the supply of this value added sector, the certified BDA eco-enterprise can become the engine of economic development, providing social and environmental benefits for communities. BDA is firmly anchored in a vibrant and creative green economy that has lasting benefits and value for all.

To honour the contribution of its partners to the Plant Action program, to sustainable development and green economy, BDA organized an exhibition on the sidelines of the Francophonie Summit in Kinshasa in October 2012. The title of the exhibition was Green economy: Entrepreneurship and Responsible Investment: Drivers of sustainable development in Africa.

Consisting of large vertical panels with attractive design, the exhibition captured the interest of more than a thousand visitors. Congolese from all the provinces were stunned to learn about the wealth and the economic potential that lies in the Congolese biodiversity. In addition, hundreds of people left their names in our attendance book to participate in the next training program Plant Action starting in 2013.

The first phase of the selection process

of participants to the training program started in December 2012. Receiving financial support from the Congo Basin Forest Fund from 2012 to 2015, BDA will train two cohorts of ecopreneurs (ecologically responsible entrepreneurs) in the cultivation, processing and international marketing of African botanicals (plants with high added value), in strict compliance with quality standards issued by the World Health Organization. The formation of each cohort lasts 18 months and is followed by a phase of business mentoring to ensure the start of the enterprise on time. You can find more information on www.fondationbda.org about our next recruitment phase.

To bring the issues of sustainable economic development to highlight, BDA also organized an official ceremony with many guests. BDA was happy to host The Honourable Senator Claude Carignan representing the Honourable Bernard Valcourt, a Minister of State of Canada; the Honourable Jean-Franois Lise, Minister of International Relations, foreign Trade and Francophone Quebec, His Excellency Vahamwiti Mukesyayira, Minister of Agriculture and Rural Development of the DRC and His Excellency Lukwebo Bahati, Minister of Employment, Labour and Social Welfare of the DRC.

The organization of this exhibition was made possible through the generous support of the ministry of International Relations, La Francophonie and Foreign Trade of Quebec, who at heart supports the challenges of sustainable development and the green economy.

Jrme Leblanc is a Development Officer in the Fondation biotechnologie pour le dveloppement durable en Afrique (BDA).

Several prominent figures also came to the exhibition, such as the Rector of the University Senghor, Professor Albert Heavy, the governor of South Kivu Marcellin Cishambo, the governor of Katanga Mose Katumbi, and

the Minister of Planning in the DRC Clestin Vunabandi.

Trains the Next Generation ofCongolese Green Entrepreneurs

Eco-preneurs - ecologically responsible entrepreneurs - at work

Exhibition highlighted the BDA`s commitment to sustainable development and to the green economy

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Article by Jrme Leblanc


Michael Grant becomes Ambassador to Libya.

Michael Grant worked as a sales representative for an American mineral-products company, joining the public service in 1993 and becoming a desk officer for Central and Eastern Europe with External Affairs and International Trade Canada. Mr. Grant worked with the West Bank and Gaza and UN Affairs Division until 2001, when he was made head of the Economic Section at the Canadian embassy to Mexico, where he remained until 2004. Upon his return to Ottawa, he worked as a Middle East analyst with the Privy Council Office until 2006. From 2006 to 2010, Mr. Grant was director of the Middle East Division at Foreign Affairs and International Trade Canada. From 2010 to 2011, he was director general for international security policy with the Department of National Defence. Most recently, Mr. Grant served as charg daffaires at the Canadian embassy to Libya. He has BA in Administration from Concordia University, 1992. He is married and has two children.

Alexandre Lvque becomes High Commissioner in the United Republic of Tanzania, with concurrent accreditation in the Republic of Seychelles, and becomes Ambassador to the Union of the Comoros.

Alexandre Lvque joined the Department of Foreign Affairs and International Trade in 1998 to work as a foreign service officer. He worked with the Southeast Asia Bureau and, then, the United Nations and Commonwealth Affairs Division prior to his first foreign assignment, at the United Nations in New York. Mr. Lvque also served abroad in Bangkok. In Ottawa, he worked in the Assignments Division, as deputy director in the Southeast Asia Division, as strategic adviser to the assistant deputy minister of bilateral relations, and as director of the Central America and Caribbean Division. Most recently, since 2010, he served as director of the Assignments Division. He has BSc in Political Science from Universit de Montral, 1996, and MSc in Political Science from 1998. He is married and has two children.

New Canadian Ambassadors Africain

Gaston Barban becomes High Commissioner in South Africa, with concurrent accreditation in the Republic of Namibia.

Gaston Barban joined the public service in 1977 and was assigned to Rome as head of public affairs and culture in 1989. He was deputy director of the Communications Strategies and Planning Division, and then became director of Corporate Communications Division and in 1998 director of Communications Programs and Outreach Division. From 2001 to 2004, he was deputy high commissioner in Canberra, then charg daffaires until 2005. Mr. Barban returned to Ottawa in 2005 as deputy chief information officer and director. In 2008, he became chief information officer and director general of the Information Management and Technology Bureau. Mr. Barban has a BA Honours degree in History and Political Science from Carleton University. Mr. Barban succeeds Adle Dion.

Republic of Tunisia

Republic of Kenya

Republic of Mali

Kingdom of Morocco

Botswana

Cameroon

DR Congo

Cte dIvoire

Egypt

Ghana

Libya

Mozambique

Nigeria

Senegal

South Africa

Sudan

Tanzania

Zimbabwe

New Ambassadors

Canadian Embassies

Algeria

Federal Democratic Republic of Ethiopia

Burkina Faso

His Excellency Samuel Valis-Akyianu, High Commissioner

for the Republic of Ghana.

Her Excellency Tebelelo Mazile

Seretse, High Commissioner

for the Republic of Botswana.

New CanadaAmbassadorsAfrican in

Canadian Embassies Africain


Nambia


want to take this opportunity to talk to you about Canadas international development objectives. And how we, collectively, including the private

sector, can contribute to these objectives and benefit from it in a meaningful way. Today, the line between domestic and global is a moot point. We can no longer insulate ourselves from events happening around the world. What happens in other countries ultimately has a local impact, and not just on TV, or on the Internet, but in our communities and our homes.

*** Growth rates are higher in many

developing countries than in developed ones. Trade between developing economies is on the verge of surpassing their trade volumes with developed economies. Developing economies are investing in Canadas economy more and more. At the same time, commodity prices are making basic food staples less affordable for many of the poorest people, regardless of where they live.

We are operating in a new world of development. Forty years ago, Canadas Development Assistance was a lifeline for the poorest people in developing countries-and it still is. However, today, the Government of Canadas development program represents a much smaller share of resources flowing into developing countries. There is an economic imperative to our development work.

The Importance of Economic Growth to Development

You may be surprised to hear that the export and investment markets you covet, like Brazil, Thailand, Costa Rica and South Korea, were all development partners of

CIDA, until recently. When we help other countries grow their economies, we connect Canadian businesses to some of the worlds fastest growing markets, which leads me to CIDAs Economic Growth Strategy and the opportunities for Canadian businesses that work in foreign markets. The Government of Canada has tools that help business ventures abroad.

CIDA takes an upstream approach to economic growth. We help to make countries and people, trade and investment ready. CIDA can help develop the capacity to negotiate with other countries, implement international commercial agreements with Canada and other trading partners, and help firms benefit from these agreements. We will be doing more of this in the future. However, CIDAs primary work in this realm helps developing countries create the right conditions to make capital available for companies to invest in jobs, to connect businesses to markets, and to encourage investment, innovation, training and trade.

Our Economic Growth Strategy focuses on three things: building economic foundations, investing in people, and growing businesses. First, CIDA supports governments in developing countries to build the necessary legislative and regulatory frameworks required to allow for private sector led growth in their economies. For example, one of our best achievements is improving regulatory capacity.

The second part of our Economic Growth Strategy focuses on growing businesses. The developing world relies on small- and medium-sized enterprises for much of its economic growth. Too often, these small businesses come up with a great idea for

a product, only to watch it fizzle because they are without the necessary tools to turn their concepts into commercially viable success stories. This is why CIDA targets these businesses, helping to enhance their financial viability, productivity, and competitiveness. We also work to include women in our education and demand-driven training programs. They are often excluded from the formal economy in the developing world.

This brings me to perhaps the most important, third, aspect of CIDAs Economic Growth Strategy: Investing in people. Often, this is a matter of helping people gain better access to credit, insurance, training and financial services. As mentioned, this is especially critical for women, who often face legal, social and cultural barriers to economic opportunities.

Partnerships As it stands, CIDA collaborates with a

broad range of actors, including developing country governments, donor partners, non-governmental organizations, multilateral institutions, and the private sector. And while we have a long history of working with the private sector as executing agencies, the fact is we need to engage more. The private sector is the driver of long-term economic growth globally. Without an increasing presence in the developing world, we will not achieve the development goals we are committed to at CIDA.

As developing countries grow and open themselves up to more foreign investment, Canadian companies have an opportunity to share their expertise and business practices, in a mutually beneficial way. Canadas mining and extractive sector is a prime example of how a government agency

Excerpts from Minister of International Cooperation, the Honourable Julian Fantinos

keynote address to the Economic Club of CanadaNovember 23, 2012, Toronto, Ontario

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Reducing Poverty - Building Tomorrows Markets

like ours can partner with the private sector to advance global development objectives. This is a huge opportunity for both Canada and developing countries.

Especially when you consider that almost one-third of the Toronto Stock Exchange Index is comprised of the natural resource sector. Canadian companies in the extractive sector account for almost half the mining activities in the world, and represent approximately 12 percent of Canadas direct investment abroad. These companies boost economic growth and provide high-value jobs to thousands of workers in Canada and around the world.

CIDA is working to help the Canadian mining, oil and gas sector to partner in development with local governments and NGOs for mutual benefit. The fact of the matter is that our firms are a key contributor to reducing poverty and helping people benefit from their own resource wealth. Let me give you a few examples of how CIDA is expanding the economic impact of local mining operations by establishing nearby community development projects.

In Burkina Faso, we are working with Plan Canada and IAMGOLD to help youth receive training and job skills that meet labour market needs in various sectors, including mining, sales, tourism, carpentry and mechanics. In Ghana, a project with World University Service of Canada and Rio Tinto Alcan will improve education and access to clean water for more than 130,000 residents in 12 mining communities.

I will take this opportunity to clarify a misconception about these projects that has been perpetuated by the media and some organizations here in Canada:... that CIDA is subsidizing mining companies. This simply isnt true. CIDA does not subsidize Canadian companies. We do not subsidize NGOs for that matter. We are an outcomes driven agency. We use any and all legitimate vehicles, including the private sector, available to us to meet our stated

objectives. The fact is developing countries are

using natural resources - more and more - as a key economic driver to create jobs and provide governments with revenue to deliver services. In 2008 alone, exports of oil and minerals from Africa, Asia, and Central and South America were worth about $1 trillion-nine times the value of international development assistance to these regions. Trends show that this will only increase. This is why it is important that extractive industries work in a way that benefits everyone involved. And this is why CIDA will continue to work with the sector.

Last year at the Commonwealth meetings in Australia, Prime Minister Harper announced that CIDA is leading the creation of an international institute on the extractive sector and development to help developing nations harness their resources to generate sustainable economic growth and reduce poverty. We asked Canadian universities to submit proposals for how they would establish and operate the new institute. It is my pleasure to announce that the University of British Columbia, working with Simon Fraser University will be hosting the new Canadian International Institute for Extractive Industries and

Development. We look forward to working with them and the Canadian private sector on the implementation of this important work.

This new institute will build on Canadian leadership in mining, oil and gas to increase the capacity of developing countries to manage natural resources in a way that is sustainable and fuels economic growth.

Innovation Beyond the extractives sector, we will

continue to find new ways to be more effective. Indications are that some development challenges may be better addressed by using these new approaches rather than more traditional methods, and that they are more likely to draw competitors who focus directly on results, accountability and innovation.

This exemplifies what the private sector can bring to the table: Specialized expert solutions to development problems. Companies are also more likely to back high-risk solutions. They simply need access to the right tools to do so.

My impression of international development so far is that it is a global process that strives to move people from poverty to prosperity. This process is not simple; it is complex. And, it is not easy; it is extremely difficult. But it can and is making a real difference. Canadian business leaders like you can and should work with CIDA to seek a more prosperous, secure world, while reflecting the Canadian values we cherish. This will not only help us meet our goal of eradicating poverty. It will also help build Canadas market opportunities for the future.

Thank you.

September 2012 visit to Burkina Faso, at the Village de Namassa

Minister Fantino talks with some of the children about life in the refugee camp.



or a while Bruce Montador was our man in Tunis: from 2007 to 2011, he represented Canada at the African Development Bank

as an Executive Director. Having travelled to 28 countries in Africa either for work or fun, he shared his thorough Africa-insights with The Rising Africa.

First of all, how does the development work of AfDB differ from the one of World Bank (and the planned development bank by the BRICs)?

The AfDB has fewer resources than the World Bank has for the African region, so it needs to focus. It tries to limit its programming to a relatively few areas infrastructure, private sector, governance and higher education. Infrastructure is critical, particularly for things like electricity, regional integration and water. The private sector is taking off there are ever more references to Africa in the mainstream business press, but there are still many challenges facing both African and foreign entrepreneurs.

It is hard to comment on the proposed BRICs development bank, since as far as I know it is not yet operational. There is a tendency to announce projects like that without them ever doing very much for a range of practical reasons.

How does Canada participate and finance the bank? Is the contribution from Canada growing or the opposite?

Canada supports the Bank in two ways. As a shareholder, Canadas capital pledges allow the Bank to borrow at good rates on the market, to on-lend to middle income countries and the private sector. As one of the few remaining AAA credits, Canadas pledge is important to the Bank, particularly since Canada is already a big shareholder for our size (about 10 percent of the non-regional share).

Moreover, during the financial crisis, there was a need to increase the Banks capital, and the temporary pledge of capital Canada made at the Pittsburgh G-20 meeting in 2009 allowed the Bank to continue to serve its members.

The other way we, Canadians support the Bank is through the budgetary grants to the African Development Fund to allow for loans and grants to low-income countries and for regional public goods. We currently give 108.5 million dollars a year it will be up for renegotiation next year for the cycle starting in 2014. We are the 6th largest

Canada

Bruce Montador, Senior Fellow of Graduate School of Public and International

Affairs, University of Ottawa

6thLargest

African Development Bank - Tunis

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frican evelopment ank!Donor at the

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Interview by Marje Aksli


donor, and our contribution has grown with each replenishment.

Canada is seen as an important partner though for African Development Fund, the big players are really the Europeans the UK, Germany and France. Canada also supports some multi-donor trust funds that do additional work in areas like preparatory work for regional infrastructure projects and water, and for Aid for Trade.

What can Canadian companies and NGOs do to benefit from the AfBD? Please share recommendations...

Canadian consulting companies do quite well from AfDB contracts. Firms that are interested should be in touch with the Embassy in Tunis, which can help to keep them informed of opportunities. Companies with bigger investment interests should check with the Banks private sector department to see if there are possible synergies. Some NGOs may find consulting opportunities, and some of the thematic trust funds, like the Congo Basin Forest Fund, have approved projects from Canadian NGOs. AfDB does not do as much outreach to NGOs as at the World Bank, in part because NGOs have not typically paid a lot of attention to the AfDB.

What are the trends affecting the AfBD and how does it affect Canadian companies and NGOs?

The AfDB is bolstered by the growing Afro-optimism, and companies and NGOs will see growing opportunities. However, the tight fiscal environment in donor countries will probably limit growth of the concessional window, the AfDF, and thus limited growth in the Bank Groups operations in least developed countries. There may be fewer Bank contracts available in traditional areas of health and basic education. Finally, there will probably be more competition from African firms in the markets for Bank procurement.

Can you share your personal opinion

on Africas development; say from 2007 to 2011, on the example of one or two countries of your choice?

Since my work in AfDB largely coincided with the financial crisis I can say that Africa was doing quite well before the crisis, and was not directly touched by the financial crisis. The only country that was really integrated into the international financial system, South Africa, has a sound banking system. However, like Canada the continent was adversely affected by the economic downturn created by the financial crisis in the US and Europe.

In addition, because of the nervousness of international lenders, who pulled back from marginal markets with which they were less familiar, a description which basically fit the whole of Africa.

Fortunately, the relatively rapid recovery in Asia, and in commodity prices, as well as a return of Asian investors looking to secure supplies of commodities, helped Africa to get back on to a solid growth path relatively quickly.

That is an overview, obviously situations vary. A country like Ghana, where governance and economic reforms were well underway, and where new oil production is adding to growth, is a very positive story. Tunisia, where political uncertainty has devastated the tourist sector, has actually not done badly in terms of sustaining exports despite the weakness in the euro-zone, its main market. The East African Community has been showing fairly solid growth, based on resources but also the gains from growing integration.

Professor of economics at the London School of Economics and Political Science Alwyn Young has claimed in his research paper The African growth miracle that Sub-Saharan living standards (as measured in ownership of durable goods, the quality of housing, the health and mortality of children, the education of youth and the allocation of female time in

the household) have been growing three and a half to four times the rate indicated in international data sets. Does it confirm your impression of African development?

It is an interesting analysis, and not inconsistent with the AfDBs estimates of a larger African middle class than might be expected. However, it is still important to recognize that many of those people emerging from poverty are still relatively vulnerable; the trend is positive, but there is a long way to go. This of course also means that there is lots of scope for further strong growth.

In your view, is it justified to compare North African countries with Sub-Saharan countries or should the stats and analysis be always separated, as two very different entities?

From the political perspective of African countries and the African Union, it is all of Africa that is the frame of reference. Obviously there are cultural and economic differences between North Africa and Sub-Saharan Africa but I dont know if looking at the Middle East and North Africa together is a better framework. There are lots of differences between the Maghreb and the Mashreq.

We in CCAfrica often make country-based overviews of development (so called Monthly African Indicators), but perhaps there are other units (cities, nationality, culture etc) which would tell a better story?

With 54 countries the indicators become a sea of data, but the cities, cultures etc are open to interpretation. I would suggest looking at the five broad regions North-Africa, East Africa, Southern Africa, Central Africa and West Africa. There are one or two countries whose allocation is controversial or in flux, but broadly this approach produces relatively homogeneous (or less heterogeneous!) subsets. One story to tell in this context would be the relative success of regional integration in the different areas best in East Africa and weakest, so far, in North Africa.

AfDB estimates a larger African middle class

than might be expected.


o begin, we asked Mr. Boivin what prompted his participation in the round table with the Prime Minister.

Interview by Marje Aksli

Mr. Harper visited Senegal on his way to the Francophonie Summit in the Democratic Republic of Congo, notably to announce Canadian government aid as well as the enhancement of trade relations with Senegal. Of particular importance,

was the announcement of the conclusion of negotiations which will lead to the execution of a Foreign Investment Promotion and Protection Agreement, between both countries, Egypt being currently the only African country with such a treaty in place with Canada.

In preparation for his meeting with the President of Senegal, Mr. Macky Sall, Mr. Harper held a meeting organised with a small group of senior business executives representing seven organisations. I attended

as a representative of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), being co-leader of the Africa section of their International Committee.

How would you describe the meeting with the Prime Minister and which companies were present?

The Prime Minister is known to enjoy meeting with the private sector and this was evident at our meeting which was very cordial and was very appreciated by the participants. Since he requested to

Mr. Pierre Boivin, board member of CCAfrica and partner and co-leader of the Africa Initiative at the McCarthy Ttrault law firm, recently participated in a round table in Dakar with Prime Minister Harper during his Africa trip at the beginning of October.

As a new board member of the Canadian Council on Africa, he shared his experience of this high-level encounter with The Rising Africa.

HandshakeWith PrimeMinister

A PROUD MEMBER OF CCAFRICA

A WARM

SenegalHarper in

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Photos courtesy of the Office of the Prime Minister

meet with a small team of executives, this allowed for dynamic discussions and the Prime Minister was very receptive and asked several questions.

In addition to CIM, which I represented, there were three mining companies which have projects in Senegal: IAMGOLD, Teranga Gold and Oromin Joint Venture Group. The other companies present were Fujitsu Canada, Desjardins and AECOM Canada which provided a broad business perspective.

I also had the opportunity to offer CCAfricas collaboration should the Prime Minister or any of his collaborators wish to obtain additional information and insight from an organisation representing a wide spectrum of Canadian companies that are involved in Africa.

Could you tell us about CIMs involvement in Africa?

CIM is an organisation consisting of almost 15,000 members in the mining industry which has existed for over 114 years. It is a well-established and respected organisation both nationally and internationally.

Initiated by the government of Canadas Corporate Social Responsibility strategy for the extractive sector with CIM leading the CSR Centre for Excellence, CIM has been active in Africa on several fronts especially in the last 18 months. Many projects are underway such as the development of CIM branches in Dakar and other cities in West Africa. At a later stage, CIM is looking into a project to foster the creation of a broader African mining organisation. CIM also recently organized a first Gold symposium in Dakar in collaboration with the Canadian Embassy in Senegal and has been involved in several trade missions and forums in West Africa.

You are a relatively new board member of CCAfrica. Please tell us about your initial impression.

Joining the board at this point of time is a privilege as CCAfrica has just celebrated its 10th anniversary and has established

its credentials. Mr. Lucien Bradet, the Executive Director, Mr. Michel Ct, the previous Chairman of the Board and the directors and staff have laid out an excellent foundation over the course of the last decade.

Its also an exciting time to join CCAfrica because of the added interest brought about by Africas amazing economic development potential. CCAfrica is also privileged to have Mr. Benoit La Salle join as new Chairman of the Board since he has a highly successful track record notably as a dynamic business leader for Semafo in West Africa.

In your opinion, are there opportunities for Canadian businesses in Africa?

As the worlds second most populated continent with over one billion inhabitants and blessed with abundant natural resources, Africa is positioned for impressive economic growth and the opportunities are endless.

Canada has made important investments in Africa over the years and Canadians are viewed positively in Africa. We speak English and French which are the two predominant languages, we do not have a colonial past, and privileged areas of development such as natural resources, energy and infrastructure development, to name a few, are areas in which we excel. In my view, Canadians are most welcome in Africa and do provide an attractive alternative to other foreign investors.

Could you tell us about McCarthy Ttraults involvement in Africa?

For many years now, McCarthy Ttrault has been actively involved internationally, including in Africa, serving its clients on a wide variety of mandates. Our firm has obtained numerous independent national and international accolades, notably by Chambers International and can provide high quality legal services and business

advice in a wide variety of practice areas and industries.

We have been involved in various areas of expertise across the African continent notably in Business Law, Litigation and Project Finance, as well as in key industries

such as mining, oil and gas, energy, infrastructure and telecommunications. Let me provide you with a few examples. In mining, we

act for a wide range of clients such as Toro Gold in Senegal; Xstrata for the Kabanga Nickel Project in Tanzania; for Atlatsa and for Giyani Gold in South Africa; for First Quantum in Zambia and Botswana and for Frosys and Kombat in Namibia. In oil & gas, we are currently representing Westbridge Energy in Namibia and have recently advised Heritage Oil in Nigeria. We also act for ENRC Mozambique Limitada in connection notably with the negotiation of a concession with the Mozambiquan Government relating to the construction of a railway and the development of port facilities. In the financial services sector, we have assisted the World Bank in the OHADA region and we have also been involved in the telecommunications industry where we acted for the governments of Morocco, Burkina Faso, Algeria, Mozambique and Mali.

We have also assisted clients in various litigation matters such as tax disputes with host states arising from activities in the natural resources sector or, recently, successfully defending a class action claim for Anvil Mining regarding a matter originating in the Democratic Republic of Congo. In that matter, the permission to appeal to the Supreme Court of Canada was denied on November 1st, 2012 in favour of our client.

Our firm has endorsed an Africa Initiative which I have the pleasure of co-leading with my partner David McLeod Smith from our London office. This speaks to the importance of doing business in Africa for our firm.

Thank you.


Canada has what Africa needs now: I would even use the hand and glove metaphor to describe

Canada and Africa relations.

The Canadian Council on Africa (CCAfrica) is pleased to announce the appointment of Mr. Benoit La Salle, FCPA, FCA, MBA as the new Chairman of the Board of Directors

of the Canadian Council on Africa. Mr. La Salle is the founder and Executive Vice President of the Board of SEMAFO, Chairman of SEMAFO Foundation, President and CEO of

SEMAFO Energy. Mr. La Salle was also Chairman of the Board of Directors of Plan International (Canada), one of the leading NGOs in Canada and has served for over 18 years. The Rising

Africa met with him to discuss his new mandate as President of the Board and his experience in Africa.

The New Chair of the Board of Directors for The Canadian Council on Africa

Benoit La Salle

Interview by Leonie Perron

ow did you discover the Canadian Council on Africa and what led you to take the role as the new Chairman of the Board?

I have known CCAfrica for several years now, mainly for its pioneering role in the Canada-Africa relations. CCAfrica, like me, had an avant-garde vision of Africa, which I always liked. However, at the time, SEMAFO was already well established in Africa since the company has been

around for 17 years. A few years ago, the natural resources sector did not have the same appeal it has today and SEMAFO had to position itself and establish alone his reputation as a company of reference over time. Now, the situation in Africa has changed and the natural resources sector needs an organization such as CCAfrica, which is an essential platform when it comes to doing business with Africa. While I reduced my operational responsibilities within SEMAFO in order to focus myself more significantly on the Canada-Africa relations, the position of Chairman of the Board of CCAfrica was offered me which I accepted with great pleasure, because it was in line with my personal vision regarding the relations between Africa and Canada.

Having served on several boards of organizations having outstanding success, such as Plan International and the SEMAFO Foundation, which concepts previously learned would you like to bring to the Canadian Council on Africa?

H


Gnogondm Womens group : working for the Shea Project, Yona -Burkina FasoPhotos courtesy of Martine Brideau, Semafo Foundation

Humbly, I would like to make corporate social responsibility a predominant theme in all initiatives taken by CCAfrica, because human values and concerns of sustainable development are the foundations of a successful relationship between Canada and the different African countries. PLAN and SEMAFO Foundation are examples of sustainable development that helped build strong relationships that will stand the test of time. I think CCAfrica has the responsibility to educate its members on the various issues of corporate social responsibility. The companies in mining, infrastructure or any other field, all have a role to play in the sustainable development of the country where they are present. Ill make sure CCAfrica becomes a vehicle for the promotion of CSR, whether through its activities, its various publications (Rise in Africa, studies) or when in mission in Africa. In this way, CCAfrica will become an essential platform, not only for Canadian companies, but also for the various African countries which CCAfrica does business with.

What is your plan of action for your term as Chairman of CCAfrica? Where do you see CCAfrica in ten years?

First, I would like that, in Canada, CCAfrica greatly increases the number of its members to have a national coverage. CCAfrica must become, for all Canadian companies wishing to work in Africa, the ultimate reference to guide them, to exchange with them and to protect them from hidden risks that sometimes arise when doing business in Africa. On the other hand, for the African countries, I would

like that CCAfrica becomes a gateway to Canada. To do so, CCAfrica must be known by African governments to ultimately become the first stop of African business people visiting Canada in order to meet their Canadian counterparts, which should be the majority of CCAfrica members. I see, in ten years, that CCAfrica might be able to play the role of socio-economic platform between African countries and Canada. During economic mission to Africa, CCAfrica representatives should advise the African government agencies they meet about the financial, legal, fiscal and logical needs of Canadian companies to do business in Africa. Investors seek stability and fairness when dealing abroad. Companies will naturally form local staff

in order to evolve in the organization. CCAfrica should make recommendations institution to institution, as a third party neutral. This would facilitate economic exchanges for Canadians interested in doing business with Africa.

Personally, why do you think Canadian companies and institutions should become a CCAfrica member?

The African continent has become, in recent years, the continent most coveted by global economic powers. Developed economies are currently experiencing an economic downturn, prompting major developers to seek alternative markets. Africa is the continent that has and will continue to offer the largest markets for infrastructure projects, allowing at the same time, the development of their primary and tertiary economy. Thus, Canada, its institutions and companies must and will have to be structured in order to remain competitive with countries already ubiquitous on the continent such as France, but also China and USA. CCAfrica provides an ideal platform for structuring the African approach to increase the firepower of Canadian companies and institutions and their chance of success.

Having had successful business yourself in Africa, what would you recommend to companies wishing to do business in Africa, but still hesitate?

I would first recommend to become a member of the Canadian Council on Africa so that they can get to know the continent, its culture and its people. I would suggest these companies to participate in CCAfrica


Gnogondm Womens group : working for the Shea Project, Yona -Burkina FasoPhotos courtecy of Martine Brideau, Semafo Foundation

Children in NigerPhotos courtesy of Martine Brideau, Semafo Foundation

ca events to establish contacts and to avoid making novice mistakes. It is important for these companies to participate in trade missions to see the possibilities and opportunities that exist in that specific country.

SEMAFO has a very good reputation on the African continent, how do you explain this phenomenon?

SEMAFO success is directly related to social integration. SEMAFO is a Canadian company that is perceived in Africa as a human society, with real, just, economic and social values. Since the beginning of its existence, SEMAFO has an economic mission and a humanitarian mission. The first mission that we set ourselves at the beginning of is to establish enduring relationships with the countries in which we operate and through our experience, expertise and financial acumen, partner to responsibly develop natural resources. Our humanitarian mission, as well as it is to make sustainable contributions to improve the quality of life and livelihoods of the communities in which we operate through social, health, education and environmental policies and programs. From this mission, we have created the SEMAFO Foundation who endorses this mission fundamentally. For me, corporate social responsibility is not a task or a department, but an intrinsic value of our management and our decision-making mechanism.

SEMAFO has important projects of corporate social responsibility (CSR) in West Africa. [12:19:49 PM] Marje: What would be your recommendations for other companies working in Africa, who wish to also implement CSR projects?

First, corporate social responsibility should be part of the strategic plan of any company wishing to operate in a developing country. CSR programs must come from the base of the society from surrounding populations and not imposed by a team who did not consult the local population. A company does not dictate its CSR programs, but executes the conclusion of discussions with people, local and national institutions. For successful CSR programs, they must bring people together,

including national officers, employees and civil society. SEMAFO, over time, through the activities of SEMAFO Foundation has become the benchmark for corporate social responsibility. CSR cannot be measured with economic indicators, but rather a statement of fact. When you see an increase of life quality, education levels, access to medicine and the creation of sustainable jobs, you know, at this time, that your CSR program meets the needs of local populations.

What do you think is the role of the private sector in international development?

The private sector must be omnipresent in international development, as it is the only one who can provide technical and vocational training applied to a specific sector or industry. However, it must be accompanied by the public sector, African and Canadian, to support of these institutions.

In the same issue of The Rising Africa, Joe Ingram encourages Canadian companies to implement supply chain outside of their investments. SEMAFO adopted this practice. Was it difficult for the company to do this? And what is the advantage of this?

Once the company has reached a critical size, the implementation of a supply chain is essential, because in Africa, it is very difficult to rely on local suppliers when an operation requires a Just in time method. The supply is the key to your success and should be managed internally and cannot be left to the variations of the market. At SEMAFO, with mining operations in three countries, factories turning round the clock, seven days a week and where parts delivery time is up to six months, the supply chain becomes either your Achilles heel or your success.


In September 2013 the ACELD will gather 120 exceptional emerging

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Paprika fields in Burkina FasoPhotos courtesy of Martine Brideau, Semafo Foundation

School lunch program in Burkina FasoPhotos courtesy of Martine Brideau, Semafo Foundation

In September 2013 the ACELD will gather 120 exceptional emerging

leaders for an unparalleled leadership development experience. They will

explore ideas, issues and challenges faced by businesses, governments,

labour and society. This transformational experience strengthens

participants leadership capabilities and builds their global, regional and

local networks.

Business, labour and governments are invited to join us, to partner together

to create smarter, more inspired and globally connected leaders across Canada

and Africa. Support the ACELD nominate an emerging leader, publicly

demonstrate support for social and economic growth in African countries, and

achieve sustainable influence across the globe.

To support the ACELD and nominate a candidate from your organisation,

please contact: Karen Henderson - [email protected] or

+1 (289) 879-1267

The 2013 Africa-Canada Emerging Leaders Dialogue (ACELD) is Seeking Leaders and Partners

PresidentHRH The Princess Royal, Princess AnneFounder & PatronHRH Prince Phillip, The Duke of Edinburgh

www.aceld.net GATHERCONSIDERTRANSFORM

HRH The Duke of Edinburgh,Prince Philip

Allow emerging young leaders to create networks that will serve them for decades...put them in the same room together and make them break bread.

ARE OPEN NOMINATIONS PLATINUM

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his was the message Mr. Field Marsham shared in the recent Canada-Africa Symposium Looking Forward. His advice

to the room full of Canadian executives and policy makers on October 16, 2012 from his 20 years of experience in Africa was to catch the opportunity the rising Africa is offering.

I would strongly urge Canadian businesses and investors to broaden their perspectives and examine the tremendous opportunity and potential in Africa, a continent that is often - and unwisely - overlooked. They would do well to be part of a success story that is only beginning to be told.

Charles Field-Marsham grew up in Toronto, received a BA from McGill, worked at Credit Suisse investment banking, then moved to Africa in 1993 and married a beautiful Kenyan lady in 1994. In Kenya, he founded or acquired three companies (see the text box on the next page).

Drawing from the experience of running and managing these enterprises, his message concentrated around Africas improving economic backdrop and increasing

investment. For example, inflation is down from the 22 percent in 1990ss to 8 percent in 2000s, the government debt as a percentage from the GDP is down from 81 percent in the 1990s to 59 percent in early 2000s. While the budgets run on average 4,6 percent deficits from GDP, in 2000s the deficitis only 1.8 percent.

He cited a survey conducted by the Abu Dhabi Investment Company and the Economic Intelligence Unit about institutional investor intentions towards Africa.

Their key findings were the following: Africa is seen as having the greatest investment potential amongst all frontier markets; investors plan to at least double their asset allocation in African markets over the next five years, and the main catalyst for investment is the emerging middle class (more so than natural resources), and finally, investors are becoming more comfortable with political and economic risks, he told the audience in the Chateau Laurier.

The question is - is Canada missing out?While a large number of foreign investors

are participating in the growth of Africa,

Canadians seem to be hesitant about this market. For example, approximately 3.8 per cent of total China FDI flows to Africa, while only half per cent of total Canadian FDI flows to Africa.

Sub-Saharan real GDP growth rates outpace the developed world and emerging market average in 2012 and 2013. The profitability of foreign companies in Africa has been consistently higher than in most other regions in the world. Since 2004, Africa has had the highest growth rate of private foreign direct investment (FDI) into emerging markets. The rate of return on FDI in Africa has averaged 29% since 1990.

Source: Maplecrofts Political Risk (Dynamic) Index

T

In Africa, Persistent and Passionate!be Polite, Patient,

4of Africa

PsArticle by Marje Aksli


Africa has had the highest growth rate of private foreign direct investment (FDI) into emerging markets. The rate of return on FDI in Africa has averaged 29% since 1990.

Another example: Kestrel Capital has 4000 clients across 20 different countries. Of these 20 percent are based in the UK and Eurozone region and 15 percent in the U.S. Despite the broad interest in Kenyas investment opportunities, Kestrel Capital has no clients from Canada.

In his words, the reason for the tepid interest in Canada towards Africa is the outdated perception. Africa is the misunderstood continent.

For example, when I was considering whether to invest in Sierra Leone, I made the mistake of watching the movie Blood Diamonds. I got nervous me who has been living in Africa for ten years, knowing the

consistent difference between perception and reality. It is not a surprise that people living in North America have perceptions of Africa based on news coverage and Hollywood movies, and not the reality of what is happening on the ground. Thus I visited Sierra Leona and the reality in Sierra Leone is peaceful and stable.

The perception is that Africa is very corrupt. The reality is that Africa as a whole ranks better in Corruption Perception Index than Mongolia, Iran or Russia.

We have made a zero tolerance policy towards corruption, and I can assure that it is possible to run businesses without giving out bribes. Do not seek special privilege in Africa, ever.

In addition to the recommendations about being patient and polite in Africa, Mr. Field Marsham told the Canada- Africa

symposium Looking Forward that despite the perception that with todays technology it is possible to manage a large firm from abroad, management teams must have experience in Africa. Senior management must be hands-on and that domestic or Asian / Latin American strategies often dont apply. Being practical often leads to avoidance of unforeseen issues.

And while the perception is to have a strong and well-connected local partner to succeed, he advises it isnt necessary. Instead he recommends Canadians to hire the best local lawyers, accountants, and bankers, to work with Canadian embassies and to partner with the local community by making meaningful investments in Corporate Social Responsibility programs.

Leading Kenyan Stockbroker:#1 equity trader (15% share)Leading fixed income trader (10% share)Dominant service provider to foreign and local institutional clients ( >50% share)Extensive research on Kenyan stocksM&A Advisory25 employees based in Nairobi

Produces acid grade FluorsparUsed in the production of refrigerants, fluoroplastics, aluminum and other industrial products500 employees in Western KenyaMine life of 40+ years

Exclusive distributor of Komatsu mining and construction equipment300 employees in Dubai, Kenya, Uganda, Tanzania, Ghana, Nigeria, and Sierra Leone

Kestrel Capital Kenya Fluorspar Panafrican Group

PotentialKestrel Capital Management

Sub-Saharan real GDP growth rates to outpace developed world and emerging market average in 2012 and 2013

The profitability of foreign companies in Africa has been consistently higher than in most other regions in the world

Since 2004, Africa has had the highest growth rate of private foreign direct investment (FDI) into emerging markets

The rate of return on FDI in Africa has averaged 29% since 1990

Return REAL GDP GROWTH RATE %

he President and CEO of the Canadian Commercial Corporation (CCC), Mr. Marc Whittingham shared his views

on African development with The Rising Africa. Was there a lost decade in Canada-Africa relationship? Our editor Marje Aksli asked the questions.

The mandate of CCC is to assist in the development of trade between Canada and other nations. How big share of your clients are currently from Africa nations?

Right now, African clients make up a

relatively small share of our total business, but that small share is actually quite significant when we look at the types of projects that we are working on in Africa with Canadian companies these are complex infrastructure projects and projects that support democratic transparency and good governance. We are seeing a lot of potential in Africa; rapid urbanization in many countries on the continent is putting tremendous pressure on infrastructure. We are taking a very active role in engaging with clients from Africa to show them the solutions that Canadian companies can offer for their water, transportation, energy infrastructure investments, domestic governance and security needs.

Do you work with companies directly, or through their country governments only?

CCC has the authority to sign international contracts on behalf of the Crown for purchases destined for a foreign government. This provides foreign government buyers with the option of a government-to-government arrangement that can reduce the time, cost and risk of

international tendering. It also offers a very practical mechanism for bilateral cooperation in key areas such as defence and infrastructure development.

How do you choose the countries CCC works in?

First of all, we never treat Africa as one entity; we look at each country individually. I was fascinated by the address by the dean of African diplomatic corps in Ottawa, Mrs. Florence Zano Chideya at the Canada-Africa Symposium when she said: We are many different countries. Africa is not a monolithic continent. And this is what companies in Canada need to understand, as well. The countries in Africa have individual resources, individual rules of law and individual talents and human capital.

What recommendations do you have for Canadian companies doing business in Africa?

Certainly there needs to be an increased awareness that there are opportunities, as the reality of Africa starts to be discussed in the media, and Canadian Council on Africa is doing an excellent job in that regards. Another important aspect to

T

frica Is Nota Monolithic Entity

A


mention is that Canadian businesses look for opportunities where they believe there is a stable rule of law. I think you see this recognition in Africa that democracy and rule of law leads to economic development, which leads to social development. Almost in that order. I would advise the companies to know the country they are working in; to talk to Export Development Canada (EDC) about financing; to talk to Canadian trade commissioners, and to look at CCC if there is a possibility of a government-to-government transaction. And certainly I would recommend that every company looking to work in Africa to join CCAfrica. There are lots of opportunities in different countries of Africa that could benefit from Canadian expertise in various sectors.

Was there a lost decade in Canada-Africa relations?

Historically, Canada was doing more in developmental assistance programs and a lot of social development programs. I dont think we had a lost decade from the business perspective, I think we were never really there from a business perspective. And maybe Africa was not ready for us and maybe we were not ready for Africa. Another reality in Canada is that for many years, most of Canadas business was done with Canadians and with Americans. Today, our trade is shifting from almost all trade going to the U.S. two decades ago to include other markets: Latin-America, definitely Asia, and now increasingly Africa. I think it is wonderful that Canadian International Trade Minister Ed Fast is leading trade missions to some African countries.

CCC currently has an active project in Ghana in the energy field. Why and how was this project selected?

First of all, Ghana is a country where democracy and the rule of law are prevailing. As the late President Mills mentioned many times, the rule of law is necessary as it attracts investments. In terms of our project there, the Ministry of Energy needed to increase the energy capacity of the country significantly as a part of a long-term strategy to support the power demands of the growing middle class in Ghana. This meant more power plants throughout the country in a relatively short period of time. CCC first got involved in the Ghana power project when we were contacted by our trade partners at the High Commission of Canada in Ghana to assist a Canadian company, Orenda Aerospace Corporation, and its partners in negotiating

with the Government of Ghana. Both parties recognized the key facilitation role that CCC could play in the transaction for a 132-Megawatt power generation plant.

Do you see room or availability in your capacity for other companies to follow a similar route?

The opportunities for companies to follow a similar route are countless. African leaders have told me that compared to companies from other countries the Canadian businesses have the advantage of coming with quality products, with a long term perspective and high degree of Corporate Social Responsibility (CSR). Our respect for CSR also means that environmental concerns are paramount in anything we do, but also community engagement, local employment, knowledge and technology transfer to locals. I spoke earlier about rapid urbanization in many African countries and increased demands on infrastructure; we see that most of these demands are for reliable energy and adequate housing. Our goal is to come up with the best possible Canadian solution to meet countries needs.

How do you do that? The model we put forward is attractive to

governments as it presents the Government of Canada as a partner in the country for what can be a very complex process. It is a collaborative approach that includes CCC, Canadian companies, and often the Trade Commissioner Service and Export Development Canada, working with governments to assure them of a credible and ethical process. We started doing public-private partnerships (PPP) in the

late 80s. During the long learning process we realised that the key to a PPP is to make sure that the risk is shared in a right way: public sector should not take private sectors risks and vice versa. It means that both should take the risk where they are able to manage it properly. Once you do that then you are able to establish a good project that will be efficient for the communities. You need a very strong public sector that is able to negotiate a good risk sharing model with the private sector.

How strong is the public sector in African countries?

African public sectors are of varying strengths. If they do not have enough capacity, you need to back them up. This is where government-to-government contracting can be of help. As a Canadian government entity in contracting, we can provide the capacity and will make sure that the risks are shared in a way that makes sense for everyone. CCC guarantees for both parties that there will be full transparency and it will be in accordance with our Code of Business Ethics. All our employees sign it every year, and the Canadian companies we work with have to comply with it as well.

What could be the positive lessons learned that other companies / governments can benefit from?

Canadian companies have experienced enhanced access to opportunities by having the power of the Government of Canada at their side in business transactions. Foreign governments have now seen the value that CCC adds by filling the needs of governments to establish robust procurement practices, including

The gas turbine packages and switchyard, Takoradi project in Ghana.


due diligence practices to ensure fair, reasonable and ethical contracts in meeting the, often urgent, development needs of the countries. One such example is the recent delivery of state-of-the-art biometric voter registration kits to Kenya in support the countrys upcoming national election. The Government of Kenya identified a critical need for this equipment in order to prevent the delay of the elections, and CCC was able to rapidly mobilize and provide a turnkey solution, including financing, to deliver a product to permit the democratic process to unfold as it should.

Much has been talked about the CSR and the lack of internationally agreed standards on what should CSR universally hold. What can you say about the CSR projects in the two sites in Africa, in Kenya and Ghana, in terms of their respect for local communities and civil society, environment, economy and governance?

CCC represents both the Government of Canada and Canadian companies in our transactions and CSR and good corporate citizenship are at the forefront of every decision that is made to enter into

a contract. This means that we carefully consider all the implications of our business activities not only at home but also abroad. In keeping with the Government of Canadas stance to encourage and expect all Canadian companies to meet high standards of CSR, we have developed our own guiding CSR principles outlined in our Code of Conduct, and the Code of Business Ethics, which I mentioned already. One element of CSR that we are committed to is capacity building in the host country, which means that with our projects such as that in Ghana, much of the workforce is actually hired locally, leading to knowledge transfer to the local workforce. In Ghana, we had 94% local employment on the project, meaning that the jobs and skills are kept in country.

How active is the African diplomatic corps in taking advantage of your opportunities?

One of the many advantages of being headquartered in Ottawa is that we have access to the foreign diplomatic missions in Canada. One of the Corporations main strategies is to engage with the heads of missions from abroad to not only introduce

CCC and our services, but to really educate officials with the government-to-government approach to business and the real benefits that Canada brings to projects, especially to complex infrastructure projects.

Do you think CCC will have a role in the increased trade between Africa and Canada as envisioned by the Minister Fast (his announcement on Oct 16) and the planned CSR hub in Western Africa?

Absolutely. I think CCC will continue to play a very unique role in the increased trade between Canada and countries in Africa. As Minister Fast noted at the Canada-Africa Symposium, Africa is one of the fastest-growing economic regions in the world, which not only means many new opportunities, but also increased competition from around the world. I think CCC, with the Government of Canada and Canadian companies, will be able to contribute greatly to the CSR initiatives that are taking place in Africa, and I believe that supporting ethical business practices is one of the cornerstones of a Canadian approach to trade.

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he Canadian Council on Africa was pleased to be involved in the organization of Tanzania`s president Jakaya Kikwetes visit

to Ottawa on October 4, 2012, making it possible for CCAfricas member companies and organisations to enquire about business opportunities in Tanzania. CCAfrica was also pleased to facilitate a Presidential meeting with Ian Bennett, President and CEO of Royal Canadian Mint, Peter Kieran, President and CEO of CPCS, Shaun Usmar, CEO of Xstrata Nickel, Jean-Piette Sauriol, President of Dessau, Patricia Malikail, Chief Representative from EDC, and Marc Whittingham, President and CEO of CCC.

Mr. Kikwetes visit to Canada has been viewed as strengthening the economic relations of both countries for more than two decades. Since 1990s, Canada remains the single largest investor in Tanzania and the official visit of the President signals further Foreign Investment and trade opportunities between Canada and Tanzania. President Kikwete told Prime Minister Stephen Harper I would like to encourage more investment from Canada because there are vast opportunities in the mining area (and other sectors),

The President during his visit signed a bilateral Investment Promotion and Protection Agreement with Canada, which provides greater protection against discriminatory and arbitrary practices for Canadian companies doing business

in Tanzania. The President affirmed his commitment to economic development of Tanzania stating that Our government is focused on creating jobs, growth and long-term prosperity, and on creating the right conditions for Canadian businesses. This agreement will encourage investment and better protect Canadians to do business in Tanzania.

The Presidents visit does not only promote the economic relations between Canada and Tanzania but also implores that accountability and responsibility in women and childrens health issues in Africa be taken seriously. Both the Prime Minister and the President co-chaired the UN Commission on Information and Accountability for Women and Childrens Health in 2011 signaling their commitment for socio-economic wellbeing of communities across the African continent. As an extension of this, both leaders announced six new initiatives that are intended to help women and childrens access to health care, promote greater accountability in government and in the management of the resource and extractive industries.

Going forward, the visit of President Kikwete is a critical one for both countries which aims to capitalize on their strong economic and political relations. CCAfrica is very pleased to witness such a positive and long-term connection unfold.

Top Row (Left to Right): Andrew McAlister, Consultant; Jean-Pierre Sauriol, President of Dessau; Peter Kieran, President and CEO of CPCS; Marc Whittingham, President and CEO of the Canadian Commercial Corporation (CCC); Patricia Bentolila, Chief Representative, Africa, International Business Development for Export

Development Canada (EDC); Robert Orr, Former High Commissioner to the republic of Mozambique; Ian Bennett, President and CEO of the Royal Canadian Mint; Patricia Malikail, Director General Africa, for Foreign Affairs and International Trade Canada (DFAIT) Bottom Row (Left to Right): Alex Massinda, High

Commissioner for the United Republic of Tanzania; Hon Sospeter Muhongo, Minister for Minerals and Energy ; His Excellency Jakaya Mrisho Kikwete, President of the United Republic of Tanzania; Lucien Bradet, President and CEO of the Canadian Council on Africa; Shaun Usmar, Chief Financial Officer for Xstrata Nickel

TTanzania Visits Canada:

Raising the Bar for Doing Business in Tanzania

CCAfrica Welcomed the Round Table Discussion with

the President of Tanzania and the Public and Private Sector

Article by Dawit Hailu & Marje Aksli



r. Marketa Evans is the first Extractive Sector CSR Counsellor. But what work exactly does the Office of the

Extractive Sector CSR Counsellor do?Created in 2009, the Office of the

Extractive Sector CSR Counsellor has two main roles: an advisory role and a dispute resolution function. The Office of the CSR Counsellor was created as one of the four pillars of the Government of Canadas CSR Strategy for the Canadian International Extractive Sector, called Building the Canadian Advantage.

Its first role focuses on sharing public information for the benefit of all stakeholders on issues related to the implementation of the voluntary standards that form part of the Strategy. The second, the dispute resolution mechanism is called the Review Process, and it provides an opportunity for dialogue and joint problem solving between a Canadian extractive company and project-affected people.

Canada is indeed the first country to establish a dedicated office to constructively resolve disputes in the extractive sector through dialogue, by providing a public, no-cost service, sponsored by a home country government.

What is the Government of Canadas CSR Strategy for the Canadian

International Extractive Sector?The CSR Strategy, announced in March

2009, seeks to improve the competitive advantage and reputation of Canadas extractive sector companies operating overseas by enhancing their ability to manage social and environmental risks.

As I briefly mentioned earlier, the CSR Strategy is based on four integrated and complementary elements. First of all, it supports the host-country capacity-building initiatives related to resource governance. Secondly, it promotes widely recognized international Corporate Social Responsibility performance guidelines. Although they are not legally binding, the Strategy promotes their endorsement by Canadian extractive sector companies. The four endorsed voluntary standards are: the International Finance Corporation performance standards on social and environmental sustainability; the Voluntary Principles on Security and Human Rights; the Global Reporting Initiative; and the OECD Guidelines for Multinational Enterprises.

The Strategy also supports the development of a CSR Centre for Excellence in order to develop and disseminate high-quality CSR tools and training to stakeholders. The Centre of Excellence is hosted by the Canadian Institute of Mining, Metallurgy and Petroleum. Their focus is to help Canadian companies doing business around the world, by providing tools and information for all stakeholders, and to raise the bar for excellent CSR-related practices in the extractive industry. Currently, they have country profiles for two African countries: DRC and Tanzania. And finally, the Strategy included the creation of an Extractive Sector CSR Counsellor Office, which I head currently.

What is the advisory role of the CSR Counsellor?

As I mentioned earlier, one of the roles of our Office is to advise stakeholders on the implementation of the voluntary performance standards endorsed in the Strategy. We define stakeholders broadly:

all

efforts we u n d e r t a k e are in the public interest. We do not offer consulting services to individual companies, but rather information for the benefit of the public on issues connected with the implementation of the CSR standards. In our advisory work, we also focus on the conflict reduction and prevention.

What should we know about the Review Process?

The Office of the CSR Counsellor provides a new option for constructive resolution of disputes between Canadian companies and communities outside of Canada. We play a convening and facilitation role. Our problem-solving tool, called the Review Process, emphasizes dialogue and constructive problem-solving. It is about people with different views and interests working together to find mutually acceptable solutions to resolve disputes or issues. Disputes must be connected with the voluntary standards in the Government of Canadas CSR Strategy. In creating the Review Process, we consulted dozens of civil society groups in Mali, Senegal and elsewhere to hear their views.

Who can bring a request to the Office of the CSR Counsellor?

Requests may be brought by a Canadian mining, oil, or gas company (registered or head-quartered in Canada); or, by a project-affected individual, group, or community outside of Canada (assistance of a third party is possible, but optional). The Office also invites joint requests from companies and project-affected people.

How does the Review Process work?We aim to have a process that is timely

and practical. Once we receive the request, we confirm it is complete. If so, the other party is informed right away. If the request

7Questions to the Canadian CSR Counsellor

D


meets basic intake criteria, we proceed to meet with each of the parties, by phone or in person, to let them know how the process works, what they can expect, and to begin to build understanding of the issues.

We normally conduct a situational assessment in

the field. The purpose of this assessment is

not to find fault, but rather to

help everyone i n v o l v e d b e t t e r understand

the context, the issues, and whether this problem-solving approach is appropriate and will likely be helpful in resolving the issues. Some other tools our office may use are: information-sharing, convening, facilitation, process design and joint fact-finding. There is wide scope in the Review Process for creativity and discussion.

The Office received its first request for review five months after the launch of the process. As of December 2012, the Office had received three requests for resolving disputes.

The Review Process is just one way for people to try and resolve their disputes. Participating does not prevent parties from

pursuing other options. What can this type of approach do?Dialogue based dispute resolution can

find workable and lasting solutions that allow parties to maintain control and input in a process, and help improve trust and working relationships. This approach can help build trust based on scientific information beyond duelling experts, and generate a better understanding of the situation and get to the root cause of conflicts or issues. It can also help people figure out how to implement a performance standard in a way that best meets stakeholders interests.

Thank you very much!For more information, please contact The

Office of the Extractive Sector CSR Counsellor by email: [email protected] or visit www.international.gc.ca/csr_counsellor-conseiller_rse .

n November 28th, 2012 following the Lunch-discovery: discover the business opportunities in Rwanda, organized in partnership with the MRI-FCE,

which brought together a dozen of Montreal business people, The Africa Rising met with Her Excellency Mrs Edda Mukabagwiza, High-Commissioner of Rwanda in Canada

By Yacine SawadogoWhat are the tools available to

companies or possible entrepreneurs offered by the Rwandan diplomatic mission here in Canada?

The first tool is before anything the High-Commission as a physical place. Our role is more commercial than political; acting as an intermediary. Missions can be organized towards Rwanda or towards Canada according to the needs. There is also a

decentralized presence of honorary consuls to represent Rwandan interests throughout Canada. We have three honorary consuls: Montreal, Toronto and Edmonton.

Another very important tool is the Rwanda Development Board which has a representative in Canada which is based in Montreal.

You listed sectors favorable to Rwanda. According to you which ones can easily attract the Canadian investors in terms of direct transfer of expertise and / or partnership?

The infrastructure sector is a priority; including its various components (aviation, construction etc.). The energy (hydroelectric mainly) and the tourism are also interesting sectors. Concerning the latter, we organized a show on tourism of the

countries of the East African Community which attracted more than 400 people. We also have to mention that Canada played an important role in the education sector (construction of the national University of Rwanda in 1963) since the beginning of our relations.

Do you offer services that the potential investors might ignore?

I would like to mention that we are always available to give information on Rwanda (country overview, visas etc.). We can help potential investors from the identification of the opportunities to their establishment in the country. We also have a web site which gives a lot of information.

http://rwandahighcommission.ca/en/

O

Discovering

RwandaHer Excellency Mrs Edda Mukabagwiza High-Commissioner of Rwanda in Canada

Opportunities in

POWER OF

y combining the different resources and competencies of the two sectors, these partnerships have the potential

to succeed where traditional development programs have failed and where private sector investment alone has not translated into sustainable development. Savera Hayat and Carlo Dade discuss how these types of public-private partnerships can be useful to connect youth to jobs and to ensure more equitable and sustainable development with a more stable business environment.Globally, it is now clear that the private sector

is the key funder and driver of success in international development. In Europe and the Americas public-private partnerships have become an essential requirement for businesses and society to both profit and grow. Canada, however, has only recently started to consider including public private partnerships for international development in a systematic and coherent manner as part of its international development strategy. In this article, we will show that private sector role goes beyond the traditional scope of Corporate Social Responsibility projects. This role requires much closer partnerships with host country governments, local

communities, NGOs and development agencies like CIDA, USAID and others. Lets call those closer partnerships alliances. In USAID definition, a development alliance combines the energy and resources of all partners to deepen development impact through aligned private capital. A simple example of how an alliance can be developed is by matching the development challenge of unemployment with the business challenge of finding job-ready and trained workforce. The alliance can, for example, help to develop industry-certified training programs based on needs of the job market and offer job placements.

B

Partnerships between businesses and development agencies can lead to improved

returns on Corporate Social Responsibility spending for both businesses and communities, without requiring

increased spending.

ALLIANCESTHE

Article by Carlo Dade & Savera Hayat



Community groups and NGOs can help the private sector understand the needs of the unemployed youth, identify the target groups with whom to work and assist in ensuring accountability and transparency of those initiatives.

Governments can par

the rising africa january 2013

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