Africa Risk and Investment Forum examines impact of Africa’s greatest risk challenges
Frontier Advisory Deloitte presented its fourth annual Africa Risk and Investment Forum. This was the first time the event was conducted under the combined Frontier Advisory and Deloitte banner since the firm was acquired by Deloitte in September this year.
Forum speakers interrogated the impact of some of the continent’s most pressing risk issues, such as low commodity prices, fraud and corruption, political risk and terrorism, on the outlook for the continent and most agreed they have contributed to a tempering of the ‘Africa Rising’ narrative.
Fraud and corruption are widespread throughout Africa. According to Daniel Malan, Director of the Centre for Corporate Governance in Africa, they are symptomatic of much larger problems such as rising inequality, jobless growth and a lack of leadership. “These create the conditions for fraud and corruption to thrive and while anti-fraud interventions and strategies have a role to play, unless we address the broader systemic issues, it is going to be almost impossible to make even a small impact in addressing the problems we face.”
Clayton Thomopoulos, Director of Risk Advisory Southern Africa, said the ability to detect and prevent fraud and corruption is heavily dependent on access to accurate and credible data as well as nurturing awareness and creating a culture of zero tolerance. “Without a sustained approach to managing fraud and corruption, nothing will change. We need to step the rate of change up a couple of notches.”
Politics and its potential negative effect on the ‘Africa Rising’ story was addressed by Professor Gilbert Khadiagala, Head of the Department of International Relations at Wits University, and Dr Sipho Moyo, Africa Executive Director of ONE.
Moyo said in order to move forward, Africa needs leaders who are committed to socio-economic transformation. “It is essential that African leaders are committed to building confidence and cultural pride in their leadership, that they own the policy space and create a national ideology and strategy that everyone understands and is aligned to.”
Anton du Plessis, Managing Director of the Institute for Security Studies, shared his perspective on terrorism in Africa and how it requires a change of counter-terrorism strategy from one that is largely military and law-enforcement focused, run by governments and states, to one which involves a whole-of-community response.
A panel discussion about rising risk in a low commodity price environment ensued with five panellists giving their views on Africa’s ability to grow in what is expected to be a low commodity environment going forward. Picking up on the economic risks, another panel discussion on the rising risk temperature of currency and stock market risk in light of continued global economic and financial headwinds pursued.
Encouragingly, guest speakers were able to offer suggestions and potential solutions – albeit many of them long-term – which could go a long way towards addressing the challenges that are sullying Africa’s success story.
