The role of the African Union as a vehicle for investment initiatives and regional cooperation : a critical overview of the new partnership for Africa's development (NEPAD)

Abstract

Africa is facing many challenges which range from underdevelopment to high poverty levels. Although Africa is richly endowed with natural resources, the continent continues to be a source of raw material for the North. This state of affairs cannot be allowed to continue indefinitely. The high level of debt owed to multilateral organisations compounds the challenge by limiting investment inflows. Through the New Partnership for Africa's Development (NEPAD), the African Union (AU) has the potential to stimulate growth and development on the continent in pursuit of the attainment of the Millennium Development Goals (MDGs). Undoubtedly, the African Union’s NEPAD faces many challenges itself. The benefits of the multilateral trade regime will only become freely available if factors such as the negative multiplier effects associated with the accomplishment of the ideal of African integration and market access, could be mitigated. The success of NEPAD is not a given for Africa and necessitates visionary leadership. It has to be earned and as a matter of course will involve some sacrifices. Africa will have to mobilise intra-continental investment to leverage Foreign Direct Investment (FDI). The point of departure of this research study is that the NEPAD initiative is an African programme which must be led by Africans themselves, especially the intelligentsia. The Africans in the diaspora also constitute a valuable source of capacity to implement NEPAD. NEPAD promotes the participation of Africa in global affairs in pursuit of the African Renaissance. It is imperative that the architects of NEPAD listen to the concerns being raised by its opponents and continuously engage the Civil Society Organisations (CSOs) and the intended beneficiary society. It should be noted that the private sector can partner with governments in supporting the objectives of NEPAD. There is a need to harmonise policies of different AU member states to give effect to regional cooperation and integration. Regional integration can enhance the mobilisation of resources through economies of scale that will position Africa to penetrate global markets and to attract direct foreign investment. Globalisation itself should not be viewed as a threat, but as presenting new economic challenges and potential opportunities for regional integration. It is time that the Africans their own agenda within Africa. Africans must rise jointly to this occasion and emancipate themselves from dependence associated with underdevelopment and poverty. Africa has the potential and the capacity to succeed through the effective implementation of NEPAD. The time for Africa is now.