Africa green investment and sustainable development investment

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Publication Date: 
17 May 2011
Rita I. Cooma, Ph.D.
UN Millennium Development Goal: 
Eradicate extreme poverty and hunger
Achieve universal primary education
Promote gender equality and empower women
Reduce child mortality
Improve maternal health
Combat HIV/AIDS, malaria and other diseases
Ensure environmental sustainability
Develop a global partnership for development

Investors can provide a valuable service, whether it is investment banking, capital markets, commercial banking, or asset management - in Africa's Sustainable Development Investment and can simultaneously create sustainable value for African societies.

Finance and sustainability in Africa

The opportunity in African economies
Investors can provide a valuable service, whether it is investment banking, capital markets, commercial banking, or asset management - in Africa's Sustainable Development Investment and can simultaneously create sustainable value for African societies. Investors and Corporations can improve the environment, reduce poverty, advance African economies, improve corporate governance, and develop African Social Entrepreneurs.

Through the Sustainable Development Investment Project Management Office (SDIPMO)and Sustainable Development Investment Project Management Portfolio (SDIPMP), investors can leverage to simultaneously earn a profit and have a positive impact on African society through Capital Markets (to address environmental issues including air pollution, climate change, and renewable energy), Banking (to reduce poverty), Project Finance (to reduce poverty and create infrastructure development), and Investment Management (to improve corporate governance in public companies and to develop socially responsible African entrepreneurs).

Corporation role in Africa's Sustainable Development Investment

Sustainable development: The role of corporations, African government and international organizations in Africa

Private sector development can cut the middlemen in the cost of international development process and implementation and route funds efficiently and effectively to the countries population and support of the African countries development. Many strategies found in the corporate sector for growth and development can be employed in international development. Thus, investors can create a new paradigm of how international development is implemented in sustainable development investment in a cost effective way.

Sustainable development investment is in the horizon for corporation, African governments and international organizations seeking to invest in Africa and it will be facing the challenge of the effects of this external force in its daily business operations and its existence among nations and within its societies. The variables that makes up sustainable development consists of economic prosperity, which is the maintenance of high and stable levels of economic growth and employment, social equity, which is the social progress which recognizes the needs of everyone and environmental sustainability which is the prudent use of natural resources and effective protection of the environment.

Role of African government and social development

AFRICA ECONOMIC SYSTEM consists of external and internal forces that contribute to the undulation of activity of the organization, consumers and monetary and fiscal policies. Africa’s economic resource consists of land, labor, capital and human resource-which when developed and put through education and skill training, becomes human capital. In sustainable development, the future of investments in Africa will be will continue to be fossil fuels, and further development in nuclear energy, renewable energy, energy carriers, combines heat and power (CHP), carbon dioxide capture and storage, decentralize energy and recovered energy. Economic Prosperity is the maintenance of high and stable levels of economic growth and employment. The external economic forces are the life cycles, business cycle changes, inflation, interest rates, international economics, consumer sentiments, and technology, government [changes in law, regulation, taxation, and political environment]. The internal forces of countries economic system consists of the industries, the companies and labor force. The level of a country’s productivity impacts on its long term growth. Social Equity is the social progress and the recognition of the basic needs of everyone. Corporation and investors has the unique opportunity to make its Sustainable Development footprint in Africa by increase Africa’s productivity so that the population living in poverty and who are not able to acquire jobs to become financially independent can be removed from the sleeping labor supply.

The visible hand of African government intervention is necessary to provide social safety net and welfare to catalyze the population living in poverty into the labor force; the overall wealth of the cities within the countries can materialized through higher level of productivity by a sustainable development microstructure. The role of African government in providing public assistance, welfare programs, education and training, childcare, provision for the physically and mentally challenged and provisions for the elderly to the poorest segment of its population will contribute to the micromanagement of poverty from a country’s municipal/local-city level and improved efforts for long term poverty alleviation on a macrolevel, as a form of sustainable development investment.

Role of corporations, African government and African small businesses

Corporations can be the generator of wealth, knowledge and technology transfer in the African economy. The role of corporation and its participation in the African community in which it conducts its business is a form of sustainable development. Besides, brand equity, goodwill, corporate citizenship, corporations are facing a new external force in the horizon and this is sustainable development, which is the integration of economic, social and environmental forces. The question may arise as to how can these forces, once perceived as independent and specific in its own category and function, contribute to sustainable development investment? The answer lays in the rapid interdependencies and osmosis effect that technology and communications has impacted on these three separate but increasingly interdependent forces. The technological force causes a synergistic effect of economic, social and environmental fabrication that has become sustainable development as the new integrated force in the business environment. The business environment in which the corporations exist does not only face the economic, social and environmental challenges, it now faced the synergistic impact of sustainable development and a need to integrated the equation into its internal and external business environment. Hybrid forces are developing in the business environment due to the impact of technology and communication. The effect that sustainable development has on the firms, calls for a shift in its paradigm for strategic management and sustainable development investment and more active participation in economic, environmental and social development issues.

Conclusively, through bisectoral integration approach, the role of AFRICAN government and the role of CORPORATIONS and INVESTORS, international organizations and institutions for knowledge and dissemination of public information, will achieve sustainable development for its civil society, country by country, state by state and city by city, village by village. Finally, corporations can offset poverty by offering jobs, provide health benefits and education and training programs to the poorest segment of African civil society in an effort for poverty alleviation and achieving sustainable development and mitigate issues of the UN Development Millennium Goal.

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