A growing awareness of how business is tackling poverty in Africa

More new initiatives to boost trade and address poverty in Africa

Over the past few weeks there has been a wealth of analysis about what the global community has achieved since last year’s Africa-focused G8 meeting, and whether there really have been steps taken to address the underlying causes of poverty in Africa.

Commentators and NGOs have been critical of the limited progress made to increase aid and reduce debt. In addition, the recent suspension of the Doha trade talks showed that rich countries are unwilling to compromise on issues such as agriculture, which could have made it easier for developing world farmers to export their products to the developed world.

But over the past year, there has been a growing awareness of the role that businesses operating in Africa can play in tackling poverty.

Graham Mackay, chief executive of African-originated brewing company SABMiller, noted in an article published in Business Day that the private sector’s role in poverty alleviation is starting to be taken much more seriously by policy analysts. Perhaps more importantly, he added that there is also, “a growing trend towards more effective collective action from the international business community, in partnership with the public sector, to address poverty.”

Business Action for Africa, a network established in the wake of the G8 as the business response to the challenges of poverty in Africa, is spearheading some of this collective action.

Business Action for Africa, which is supported and hosted by IBLF, is promoting ways in which businesses can tackle poverty in Africa. Over 100 businesses and business organisations have joined the network over the past year, as well as key donors such as the UK government’s Department for International Development.

Business leaders are aware that what is good for business is good for development, and that businesses really can help to alleviate poverty and boost economic growth.

Case studies on the Business Action for Africa website show how businesses can tackle poverty in each of the six areas that the network is focusing on: governance & transparency, climate for business, trade, enterprise & employment, human development and perceptions of Africa.

In July, to mark the one-year anniversary of the launch of Business Action for Africa, a number of participant companies launched important new initiatives. Here are some:

	The Shell Foundation has jointly launched Aspire, a US$24 million facility aimed at supporting Africa’s under-served entrepreneurs. Aspire provides business development assistance and finance to Small and Medium-Sized Enterprises (SMEs) in Kenya, Uganda and Tanzania, with plans to expand it Africa-wide over the next few years. Download more information
	The UK Department for Education and Skills (DFES) is helping address the vocational skills gap in Ghana with its support for the Ghana Industrial Skills Development Centre. Working in partnership with the government of Ghana as well as with several Business Action for Africa member companies, the centre will open at the end of 2006 and will focus on high quality technical and vocational training. Download more information
	Business Action for Improving Customs Administration in Africa announced the completion of the first stage of its project to enhance trade facilitation through improved customs administration. Led by Business Action for Africa members Unilever and British American Tobacco, working in partnership with the UK’s trade facilitation agency, SITPRO, the first stage of the project used questionnaires and interviews to produce a report that identifies real opportunities for improvements in customs administration. This report will now form the basis of a future plan of action for the initiative. Download more information

IBLF is a strategic partner of Business Action for Africa, and provides administrative support for the initiative. IBLF also has a number of other initiatives that develop the important role that business can play in driving development across the continent.
Read more about IBLF's work in Africa.