Good governance, peace key to foreign investment

The former US Assistant Secretary of for African Affairs, Chester Crocker, told a southern African investment conference in the Mozambique capital, Maputo, on Tuesday that rule of law, transparency and good governance were the keys to improving investor sentiment in the region. Although Africa had made strides to foster good governance and improve its economic prospects, Crocker said it was still slow to dispel investor fears about wars, foreign exchange policies, bureaucracy and political risks associated with the continent. In Southern African, many of these factors meant "it is still way too complicated for a businessman to set up a business in the region." He described Africa as the most conflict-ridden area in the world, with as many as 15 violent conflicts in the 1990s - more than double the total of any other region. "The benefits of the African Renaissance depend on resolving violent conflicts and building a lasting peace. The benefits and dreams of the African Renaissance cannot take place in a region beset by war and conflicts," he added. In remarks which coincided with World AIDS Day, he also said more had to be done to fight the HIV/AIDS scourge: "The countries that have come out of the closet and dealt openly with AIDS are the countries which have been able to deal with the problem," he said in response to a question about the high incidence of AIDS in sub-Saharan Africa. According to the U.S. Census Bureau's 1998 World Population Profile, AIDS has cut life xpectancy to less than 40 from 65 years in several countries in southern Africa.