CCA Lunch in honor of

The Rt. Honorable Morgan Tsvangirai

Prime Minister of Zimbabwe 

June 11, 2009

Washington, D.C.

Distinguished Guests, Ladies and Gentlemen,

I am Robert Perry, Vice President of Programs at the Corporate Council on Africa.  On behalf of Steve Hayes, CEO and President of CCA, and our Board of Directors, welcome to our lunch in honor of the Rt. Honorable Morgan Tsvangirai, Prime Minister of Zimbabwe.    Earlier today, Mr. Hayes spoke with a luncheon of business representatives in Harare to share his views and hear their concerns.

For our guests, let me introduce CCA.  The Corporate Council on Africa is a non-profit membership organization of about 180 American-based companies operating in Africa.  We help our members make the personal links that are essential to building trust for business partnerships.  To promote those relationships, CCA will host the US-Africa Business Summit September 29-October 1 at the Washington Convention Center.   

We believe that the private sector plays an essential role in economic development.   To foster that role, CCA convened about 100 members in December 2008 to prepare a report to the Obama administration on steps it should take to strengthen trade and investment with Africa.   We presented the report, which covers nine commercial sectors, to the Administration in March.   While the U.S. can provide investment capital, training and technology transfer, it is up to African governments to enact laws and regulations to attract investment.  Zimbabwe’s draft Indigenization and Economic Empowerment legislation that would require 51% ownership by black Zimbabweans in companies is unlikely to attract many foreign investors, who assess opportunities throughout Africa and the world.    In an environment where human and property rights are regularly abused by state authorities, the proposed law would drive away investors who assess risk in making investment decisions.    

For many of us, Zimbabwe holds a special place in our hearts from the days of its struggle for independence, and the hopes for its success as a country that was the breadbasket for southern Africa.   However, those dreams for success have shriveled like a raisin in the sun, when faced with the challenge of elites seeking to maintain their grasp on power despite the cost to their people.  

The challenges that Zimbabwe faces are extreme but not unique in Africa.  Yesterday, Mr. Nasir el Rufai, former Minister of the Nigerian Federal Capital Territory told a group here that the failure of the Nigerian technocrats to win the support of the political elites has undermined the economic reforms that they initiated.   Economic reforms are significant, but inadequate without political reforms.  That is particularly the case in Zimbabwe.

Someone who understands well the challenges in Zimbabwe is CCA Board member, Ambassador Tom McDonald, who was the U.S. Ambassador to Zimbabwe from 1997-2001.   Ambassador McDonald is an Equity Partner at Baker Hostetler, where he manages issues dealing with Africa, the UK, Asia, Eastern Europe and Latin America and brings a global perspective to assessing Zimbabwe’s transition.   

Let us give a warm welcome to Ambassador Tom McDonald, the Convener for our lunch to share his assessment of Zimbabwe and its road to stability.