Institute of African Studies,

University of Ghana - Legon

2011 AngloGold Ashanti Lecture

on Business in Africa

Institute of African Studies

University of Ghana Tito T. Mboweni
Legon

Telephone: 0302-213820 ext 2051, 5577

Constraints on Growth and
Development in Africa
Email: iasgen@ug.edu.gh
Website: http://ias.ug.edu.gh

Institute of African Studies

 Institute of African Studies, University of Ghana - Legon

2011 AngloGold Ashanti Lecture on Business in Africa

Tito T. Mboweni

The Constraint on Growth and Development in Africa

October 28, 2011.

Kwabena Nketia Conference Hall, Institute of African Studies,

University of Ghana, Legon

The lecture was Chaired by the Vice Chancellor, University of Ghana,

Legon, Professor Ernest Aryeetey

The AngloGold Ashanti Lectures on Business in Africa are a

collaboration between the Institute of African Studies, University of
Ghana, and AngloGold Ashanti. Instituted in 2008, they highlight issues
related to business in Africa as broadly defined. AngloGold Ashanti
also support the Kwame Nkrumah Chair in African Studies.

Published by the Institute of African Studies, University of Ghana, P. O. Box LG73, Legon, Accra - Ghana

© Institute of African Studies, University of Ghana, Legon. 2011

ISBN 978-9988-1-7572-6
1 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

WELCOME ADDRESS BY
PROFESSOR AKOSUA ADOMAKO AMPOFO, DIRECTOR, IAS

- Mr Vice-Chancellor, Professor Ernest Aryeetey

- Mr Peter Anderton, Snr Vice-President, Anglogold Ashanti, Ghana,
- Mr Kwame Addo-Kufuor, Vice-President Corporate Affairs, Anglogold Ashanti,
Ghana.
- Mr Giri Venkatensan, Vice-President Finance, Anglogold Ashanti, Ghana,
- Mr Cicelo Nthuli, MD Iduapriem Mines
- Colleague Senior and Junior members of the University of Ghana;
- Invited guests,
- Members of the Press;
- Ladies and Gentlemen,

It gives me the greatest pleasure, on behalf of the Institute of African Studies and the
University of Ghana, to welcome you all to the third in the AngloGold Ashanti
lectures on Business. We consider it a great privilege to have as our speaker today Mr
Tito Mboweni, the first black African Governor of South Africa's Central Bank. The
Chairman will be introducing our speaker to you shortly but since this is the Institute
of African Studies I cannot lose an opportunity to express our special pleasure. Ghana
played an important role in the antiapartheid struggle by providing a home and
schooling for freedom fighters and their families. Numbers are uncertain but rough
estimates suggest that scores of South Africans found succor in Ghana. When the US
and Britain suggested that it might be possible to "reform' apartheid (i.e. during the
Regan and Thatcher era) Ghana's National Committee against Apartheid spearheaded
resistances to this. Thus, we feel that Ghana played an important part in the anti-
apartheid struggle, and are proud to be hosting as today's speaker the first black
African Head of South Africa's central bank.

Mr. Chairman, I would like to make some remarks on the significance of today's
lecture, but before I do so I should like to thank staff and colleagues of the Institute of
African Studies. We host many public events and in a context that is sometimes trying
I have, in the two years I have been Director, been gratified by the support of many of
our staff, students and colleagues, especially the Administrative Secretary Ms
Addotey and her team, and our Senior ICT Assistant, Mr Ekow Arthur-Entsiwah. I
should also like to acknowledge the University's Public Affairs Directorate. As
always, the AngloGold team have been great-- Mr Addo-Kufuor, Mr Owusu, and Ms
2 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

Victoria Wood. As we all get better at this there should be few hiccups; however, if
there are any today this is not a function of any lack of effort or diligence on the part
of anyone on this great team. Thank you!

The AngloGold Ashanti lectures on Business in Africa are a platform to highlight not
only the diversity, resilience and innovation of African businesses in Africa, but they
also provide us in the academy an opportunity to engage with industry-an opportunity
to interrogate the synergies between ideas and practice. The philosophy behind the
lectures was to highlight prominent business efforts and business persons in Africa, as
well as reveal the multiple ways in which businesses shape, and are shaped by our
socio-political development. We could ask the question, what is the relevance of the
Humanities in African Studies to the study of business in Africa? Mr. Chairman, this
is now the third in this series of lectures so I believe that our audience today
appreciate the Institute's collaboration with a major global mining company in an
intellectual project. Our relationship with AngloGold Ashanti speaks to a core
objective for the setting up of this Institute, namely, in the words of our first president,
Kwame Nkrurnah as a site that would "make a specific contribution to the
advancement of knowledge about the peoples and cultures of Africa". The state of
business in Africa today suggests that African markets are vibrant, among the fastest
growing, and yet bedeviled by a multitude of structural and social barriers-who better
to explore and unearth these synergies than researchers in the Social sciences and the
Arts? As scholars in the areas of Societies & Cultures; Language, Literature & Drama;
Religion & Philosophy; Music & Dance; History & Politics; and Media & Visual Arts
we are acutely aware of the multiple ways in which business touches what we do. Our
teaching of one of the University of Ghana's required undergraduate courses -
Introduction to African Studies - also provides us with an opportunity to engage with
students on the links between global and local business and Africa's identity within
current geo-politics. Thus, we are not just researchers and teachers, but also advocates
for the African business enterprise. Mr. Chairman permit me to mention another
aspect of our collaboration with AngloGold Ashanti, namely their support of our
Kwarne Nkrumah Chair in African Studies, the first endowed Chair at the University
of Ghana. I also suspect, if! may be so bold as to say so, that is probably the most
successful Chair so far, as our Chair, Professor Kofi Anyidoho has engaged in a
variety of activities that have raised the profile of this Institute. The Chair was
established to honour Nkrumah for his significant intellectual contributions to African
thought, and for his vision and commitment to the liberation and development of
Africans on the continent and in the Diaspora. It also seeks to promote research,
3 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

teaching and the public promotion of Africana Studies. This endowed Chair received
most of its core funding from AngloGold Ashanti and was formally launched on
Friday, September 21, 2007. We remain deeply grateful to AngloGold.

The Institute and AngloGold Ashanti have also planned to carry out research on the
socio-cultural dynamics-both pro and con-of the mining industry using Obuasi as a
case study. We are interested in exploring issues that are directly associated with
livelihoods in Obuasi-leisure, migration, community relations, social cohesion,
community aspirations, and community-industry collaborations. We expect that our
findings will have wider relevance in the business community

Madam Chairperson, before I take my seat let me say a few words about AngloGold
Ashanti. AngloGold Ashanti is the third largest gold producer and currently employs
over 64,000 people globally of which 9000 are Ghanaians, including contractors
working directly for the company. The company produced 4.5 million ounces of gold
last year of which 517,000 came from its two operations in Ghana. The company's
stated vision is to be the leading mining company and its mission is to "create value
for its shareholders, employees and business and social partners". Included among
their expressed values is respect for the environment. As today's speaker, Mr Tito
Mboweni stated in AGA Financial Statements of 2010: "As a mining company, we
have an obligation to the societies in which we operate, as our values state that they
are better off for our having been here. Naturally, mining as with all economic activity
will have an impact on the social and physical environment. Not all of that will be
immediately positive. However, AngloGold Ashanti is committed to ensuring that, on
balance, the positive consequences significantly outweigh the negative. We further
accept that our responsibility as a good corporate citizen is not only to ensure that this
the case, but also to be open and responsive to those who would want to express their
concerns ... "

Some other pros. The Obuasi malaria control, for instance, implemented in partnership
with Obuasi Municipal Assembly and National Malaria Control, which was unveiled
in 2006, has significantly reduced malaria cases by 75%. The result is a large
reduction of absenteeism among schoolchildren, market traders as well as employees,
in both the public and private sectors in the municipality. In recognition of this, the
Switzerland - based Global Fund has indicated its willingness to partner the company
to upscale the Obuasi malaria control programme in forty districts. This should save
the lives of over 3 million people, most of whom live and work in the three northern
regions of the country.
4 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

AngloGold Ashanti will start the programme next year, and it is expected to also
create jobs for over 3000 people.

The company continues to plays its part in the development of the financial markets in
the country. It may be fair to say that AshantiGold Ghana is still dominant in the entire
market capitalisation of the Ghana Stock Exchange, now a leading exchange in Africa.

Ladies and Gentlemen, once again thank you for coming, and Akwaaba!
5 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

BRIEF PROFILE

MR. TITO T. MBOWENI

Born on March 15, 1959, Mr. Tito T. Mboweni

holds a BA in Economics and Political Science
from the National University of Lesotho, and an
MA in Development Economics from the
University of East Anglia, Norwich, UK.

Mr. Mboweni has served in various capacities as

Deputy Head, Department of Economic Policy,
African National Congress (ANC) (1990-94);
member, National Executive Committee and
National Working Committee, ANC, (1994-
98);Chairperson, Economic Transformation
Committee, National Executive Committee, ANC
(1997-98); Head, Policy Department, ANC (1994-98); Minister of Labour, South
Africa, (1998); Adviser to the Governor, South African Reserve Bank,(1999-2009);
Governor, South African Reserve Bank (2002-05); Chancellor, University of North-
West, South Africa (June 2010 to date) Chairman, AngloGold Ashanti and Nampak;
and International Adviser, Goldman Sachs International

Mr. Mboweni has received two honorary doctorates at from the Universities of Natal,
Johannesburg, Cape Town, Stellenbosch and East Anglia. He is currently serving as
Honorary Professor in Economics at the Universities of South Africa, Pretoria,
Limpopo, KwaZulu Natal and Stellenbosch.

Mr. Mboweni is the proud recipient of the 1995 World Economic Forum - Global
Leader of Tomorrow; 2001 Euromoney Central Bank Governor of the Year Award
and the 2009 African Banker - African Central Bank Governor of the Year.
6 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

Abstract of Lecture
Africa’s recent economic growth has exhibited a strong and relatively stable upward
trend, outpacing aggregate Asian growth early in the 2000’s. However, the record is
uneven and current gains are largely due to oil and minerals extraction. This dynamic
has been fuelled by the burgeoning demand for resources from China, and
increasingly from India, raising the question: What is needed to sustain investment
and long-term growth on the continent? The lecture explores answers to this question
and identifies measures to improve the investment climate by reducing transaction
costs, enhancing policy and governance environments, and addressing pressing debt
relief, capital markets and public health issues. The conclusion is that, while many
challenges remain, Africa has reversed the downward spiral with an overall record of
improving governance for at least the past 15 years. This has greatly improved
capacity in many jurisdictions to effectively regulate business and set fairer terms for
foreign investment. Supporting and reinforcing these trends to create incentives for
private sector investment and involvement in sustainable development models, and to
enforce a fairer balance of power between investors and society, is key to realizing
Africa’s future prosperity.
7 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

The Role of the Mineral Industry in the Economic Industry in the

Economic Development of Africa – Pathway to Better Model
Mr. Vice-Chancellor, Professor Ernest Aryeetey,
Nananom, Niimei, Naamei,
Members of the Diplomatic Corps,
Senior members, students, and other staff of the University of Ghana community,
Leaders of Ghana’s mining industry and business community generally,
Distinguished guests,
Ladies and Gentlemen.

I am very pleased to be here in Accra, Ghana, today, to take part in this occasion
honouring one of Africa’s founding fathers. So much has been written and spoken
about Kwame Nkrumah. But one would be shocked to learn that most young kids
today know nothing about Nkrumah or the other founding leaders of independent
Africa. It might be the case that they see very little of the legacies of that generation. It
is our collective fault that such a tragic view might exist about these founding fathers
of Africa’s independence. Or it might be the case that we, the slightly older ones, are
no longer proud to be African and thus have no inclination whatsoever to talk about
these founding fathers. An occasion such as this, however, affords us the opportunity
to remember one of our own, not because he was a messiah or saint, but because he
made his little contribution towards Africa’s development. Celebrated and then
discarded by his own people. The poet, Bashir Goth says in his own way,

“Wasn’t it Nkrumah who first saw the throne?

They banished him; I can vividly remember,
They betrayed him for a few sacks of corn”.

May the memory of Kwame Nkrumah live on!

8 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

I, and the company I represent, AngloGold Ashanti, are proud to be associated with
this event, which we see as becoming a leading forum where issues around politics,
history, culture, the African economy and society’s wellbeing are debated and
discussed. I am told that this annual lecture is part of a commitment made by
AngloGold Ashanti in 2007 to establish the Kwame Nkrumah Chair at the University
of Ghana, a chair established to further the understanding of Africa’s contribution to
international civilization.

Occasions such as this are important for us: in the words of President Mbeki, to
remind ourselves that we are Africans and “(we) owe our being to the hills and the
valleys, the mountains and the glades, the rivers, the deserts, the trees, the flowers, the
seas and the ever-changing seasons that define the face of our (continent). (We) are
formed of the migrants who left Europe to find a new home on our native land.
Whatever their own actions, they remain still, part of (us)”.

Africa’s development has been under discussion for far too long. In some respects it is
becoming a boring story. Everybody who is anybody has made Africa’s development
their route to popularity. It is also true that many African leaders have allowed this
situation to persist as they tend to listen more to “outside” experts than to their own
people. Jeffrey Sachs is listened to more that Benno Ndulu. In any case, one has to
“Keep the Faith” in the hope that the new generation of African leaders will start
doing the correct thing. And they have to! They must stop thinking that political office
is royalty; they must focus on the developmental challenges of our continent; they
must make Africa a home for all of us (the silent and the noisy alike!).

Many of us here have been at many meetings which try to find out what exactly are
the constraints to African’s development. I thought to traverse the same ground but
hopefully on a more optimistic flight path. A discussion like this could be approached
from two basic angles: one might set out to argue that there are opportunities, but
9 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

serious challenges. Or one might rather take a more optimistic perspective, arguing
that there are serious challenges, but great opportunity.

Twenty years ago, anyone with any intellectual integrity would have had to adopt the
former approach. The previous couple of decades had seen the gap between Africa’s
economic situation and that of other parts of the developing world – most notably
large parts of Asia – widening alarmingly. Political instability, flawed governance and
poor economic choices had taken their toll.

Today, however, it seems not only possible, it is wholly justifiable, to take the more
optimistic view. And this is what I intend to do, without understating the challenges
our continent faces.

Africa’s recent growth story is not at all that bad. The Economist is a journal with as
Afro-pessimistic a bent in recent decades as one could find anywhere. In 2005 it was
warning that “the current wave of Afro-pessimism in Western capitals may fast run to
cynicism”. Yet this year, in an article titled “The Lion Kings” (in positive comparison
with the Asian Tigers), The Economist noted that Sub-Saharan Africa’s (SSA) average
growth rate more than doubled to 5,7% in the past decade as compared with the
previous one. That was significantly better than South America’s, and a little better
than Asia’s, if one excludes the rapidly growing China and India.

Remarkably, from 2001 to 2010 six of the world’s fastest growing economies were
African (Angola, Nigeria, Ethiopia, Chad, Mozambique and Rwanda), and IMF
forecasts hold that the number will rise to seven (7) over the next five years. This,
after only one African country - Uganda, made it into the top ten during the last two
decades of the 20th century.

Look further at the continent’s relatively powerful economic performance in the wake
of the 2008 international financial crisis. This is all deserved reward for the economic
and political reforms introduced since the early to mid 1990s. As noted by Benno
10 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

Ndulu, in his seminal World Bank paper — Challenges of African Growth, this
improved performance can be attributed to more liberal trade and exchange rate
policies, financial sector deregulation, privatisation, and public sector downsizing.
We have simultaneously seen improved macroeconomic management in the continent
coupled with improving governance in many countries, resulting in greater
macroeconomic stability manifesting in lower inflation rates, declining fiscal and
current account deficits. This, along with greater transparency in Africa’s monetary
systems and public finance, has enhanced confidence in public policy and reduced
uncertainty for private investors in respect of many African countries. Much of this is,
of course, also a consequence of reduced levels of civil strife and democratisation.

Or, as Obiageli Ezekwesili, VP for Africa at the World Bank, said at a London Stock
Exchange conference on October 6, Africa has sustained many years of sound
macroeconomic stability, has built the right institutions, has recognised the merit of
being more transparent and accountable; has shown strong adherence to market
principles and has, partly thanks to debt relief, built the fiscal space that enabled it to
implement countercyclical policies in order to mitigate the 2008 international financial
crisis. “That new Africa has rebound fastest than from any previous crisis to become
the world's second-fastest growing region.” Yet, as positive a picture as this paints, we
cannot be overly pleased.

For one thing, SSA economies have been growing off a low GDP base. While levels
of poverty have declined (UN Deputy Secretary-General Asha-Rose Migiro said this
month, the proportion of the SSA population living in poverty has declined from 59%
in 1996 to 50% currently) poverty remains pervasive.

Secondly, growth is still substantially commodity-driven, and is mainly due to

significant demand from China and India. And with exceptions such as deep-level
mining operations, the resources sector is not particularly labour intensive.
11 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

What all this tells us, I believe, is that, on balance, many of the original constraints to
growth have been managed reasonably effectively over the last 15-20 years. The
questions we need to answer now relate to what we need to do to take Africa into a
new phase of development, having done a lot already to use our resource endowments
to create the conditions for this.

I am not alone in this view. Ms Ezekwesili says she believes the “new Africa is on the
cusp of the same revolutions that hit China and India only a few years ago”.

The pathway on which we have set off and which we need intensively to continue
following contains no surprises. Its contents have been discussed and debated before.
What it requires, and is based on, is commitment and political will.

This is because, as Ndulu points out, that investment in Africa yields less than half the
return measured in growth terms than in other developing regions. This means that it
is not enough to create a policy environment conducive to attracting new investors. It
is, in the first instance, necessary to pursue measures that help to raise the productivity
of existing and new investment, particularly new investment that will allow our
economies to diversify beyond primary industries.

Or, as Eifert, Gelb, and Ramachandran argue in a 2005 Centre for Global
Development (CGDE) paper which compares transaction costs in six selected African
countries with China, the combination of high regulatory costs, unsecured land
property rights, inadequate and high-cost infrastructure, unfair competition from well-
connected companies, inefficient judicial systems, political uncertainty and corruption
makes the cost of doing business in Africa 20-40% higher than in other developing
regions.

Infrastructure development is the first priority, and electrical power is the biggest
continent-wide infrastructural issue. The challenges relate to availability of power
12 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

(many large enterprises need to generate their own power), its cost, whether state- or
self-generated, and the frequency and cost of power outages.

Other factors measured in World Bank surveys include so-called informal or

unofficial payments “to get things done” ranging from 2-3% of revenues in most
surveyed countries or to secure contracts (about 4% of the value of the contracts),
compared with less than half of one percent in China.

And interestingly, though firms in China face large numbers of government

inspections, the amount of time spent by senior managers dealing with these is
relatively small, suggesting deeper but more predictable and efficient regulation.

SSA suffers other constraints, many of them beyond our control. Yet these are
challenges that need to be met.

One-third of our population lives in landlocked, resource-poor countries. That presents

a strong case for more efficient transport infrastructure and ease of cross-border
transmission of goods and people than our competitors, rather than less.

Some 90% of the land mass is located in regions of tropical climate which is
responsible for a high disease burden. And that is responsible for relatively poor life
expectancy, human capital formation, labour force participation and, consequently,
economic growth.

Yet, to deal with probably the continent’s major public health threat, we have seen
what a massive impact a well-considered and well–managed malaria programme can
have. Since AngloGold Ashanti implemented the malaria prevention and treatment
programme at Obuasi in 2006 the incidence of the disease has fallen by 75%. And
13 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

unlike the time it takes, for example, to implement major infrastructural improvements
or to turn around corruption, there are quick wins to be had with anti-malaria
programmes. In the first year alone at Obuasi, the incidence fell by 50%.

A further exogenous factor is that we are highly dependent on the performance of our
trading partners’ economies. The centrality of Chinese and Indian growth (of recent
years in India’s case and decades in China’s) to our progress has already been referred
to. While we can take some satisfaction at our performance in relation to the
struggling economies of Europe and North America since 2008, we know that their
problems have a negative impact on our prospects.

Either way, the point is that we are dependent on trade and capital flows. And that
means greater openness and integration with global markets (not to mention the
benefits that greater intra-African openness would bring).

That brings us to the financial sector. The theory is clear. As stated by Ndulu,
financial markets enhance economic growth through various channels that include
mobilisation and pooling of resources, increased allocative efficiency of savings,
expansion and diversification of opportunities, risk sharing, and easier exchange of
goods through effective payment systems.

Better functioning financial systems are particularly instrumental in reducing external

financing barriers and thus enabling entrepreneurial activity and firm expansion
through increased lending activity.

Financial sectors in SSA countries, however, have not contributed significantly to

economic growth. African financial sectors, especially in low-income countries, are
among the least developed in the world. Limited access to basic financial services,
14 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

including credit availability, continues to pose a major obstacle to entrepreneurial

activity and welfare improvement.

Some progress is being made as financial systems continue to institute reforms,

broaden their product base, deepen their lending, and increase their reach. However,
given that deeper and more efficient systems are critical for growth prospects, clearly
much more needs to be done if financial sectors are to be in the vanguard of
engineering economic growth.

Finally, in listing the areas that would enhance productivity and competitiveness, one
cannot overstate the importance of higher education and investment in information,
communications and technology. High internet tariffs, often supplied by state-owned
monopolies, have been an obstacle. The one notable ICT exception in Africa has been
the mobile phone, where light regulation has led to an explosion in use, and social and
economic benefit to the people of the continent. To quote Ndulu again, this simple
technology has increased the productivity of indigenous business in myriad ways, as
in the following examples: A Kenyan farmer can easily find the best prices for the
watermelons she sells. A black nursery owner near George, South Africa, always had
difficulty selling to white consumers because of their security fears; now they call him
and he delivers, and his business has taken off. A fisherwoman on the Congo River,
with no electricity, keeps her catch alive in the water tethered to a line. Her customers
call her with an order and she prepares the fish for sale.

Conclusion
So many challenges remain. However, SSA has reversed its decline and many,
probably most, countries now have at least 15 years of better, investor-friendly,
growth oriented governance under their belts. This is not only cause for optimism. It
also means that we can take a more self-respecting, society-friendly attitude towards
15 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

foreign investment. Back in the 1990s, as the sub-continent was seeking to convince
those investors that it was a worthy destination for their dollars, our governments
needed to offer highly attractive terms. Major tax breaks were a sign of the times, and
so grateful were we for those dollars that we may have been willing, in embracing
them, to disregard, or turn a blind eye to regulatory standards common in the
developed world in areas such as environmental management and other issues
important to social wellbeing, particularly among communities who found themselves
adjacent to high-impact resources sector operations. Of course, some multinational
companies were committed to observing decent standards of corporate citizenship. But
some were not. And today, many of our governments and companies are the targets of
civil society disapproval, or even anger, because of this legacy, even though the tax
incentives, at least, were probably necessary to attract foreign investment at that time.

Today, society’s expectations of corporations are explicitly higher than they were in
the 1990s. And societies also expect their governments to actively advance and protect
their rights, generally and, more specifically, in respect of potential negative impacts
on their rights caused by company’s operational activities.

Happily for society, SSA has a stronger capacity to set fairer terms for foreign
investment and regulation of business in a manner that would enhance sustainable
development outcomes and a more balanced relationship between business and
society.

In conclusion, let me say that that is an outcome that the company I represent here
gladly embraces. We have been enjoying record commodity prices. Yet we need to be
sensitive to the questions being asked of business – and in particular the resources
sector – around the world: Is there an appropriate and equitable distribution of
16 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

benefits between companies and shareholders on the one hand, and other parts of
society on the other?

Is business paying due respect to the human rights of its stakeholders, particularly
employees and the communities that host us?

And while we need to steer clear of the 19th century phenomenon where large
businesses took on the role of government in providing society’s goods and services in
a rather patriarchal manner, we do need to ensure we create a more equitable social
dividend for the communities and stakeholders that we partner in our business
activities.

That approach and commitment applies to our company globally. With 75% of our
current output in SSA, that tells you where the focus lies. These are exciting times to
be part of a growing and developing African continent, and we are happy to be part of
it.

Earlier I mentioned that we have to “Keep the Faith” and I therefore end my
presentation today by turning to Maya Angelou,

“ You may write me down in history

With your bitter, twisted lies,

You may trod me in the very dirt

But still, like dust, I'll rise.

Does my sassiness upset you?

Why are you beset with gloom?
'Cause I walk like I've got oil wells
Pumping in my living room.

Just like moons and like suns,

17 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

With the certainty of tides,

Just like hopes springing high,
Still I'll rise.

Did you want to see me broken?

Bowed head and lowered eyes?
Shoulders falling down like teardrops.
Weakened by my soulful cries.

Does my haughtiness offend you?

Don't you take it awful hard
'Cause I laugh like I've got gold mines
Diggin' in my own back yard.

You may shoot me with your words,

You may cut me with your eyes,
You may kill me with your hatefulness,
But still, like air, I'll rise.

Out of the huts of history's shame

I rise
Up from a past that's rooted in pain
I rise
I'm a black ocean, leaping and wide,
Welling and swelling I bear in the tide.
Leaving behind nights of terror and fear
I rise
Into a daybreak that's wondrously clear
I rise
Bringing the gifts that my ancestors gave,
I am the dream and the hope of the slave.
I rise
I rise
I rise.

Thank you.
18 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

References:

Ndulu, Benno with Lopamudra Chakraborti, Lebohang Lijane, Vijaya

Ramachandran, and Jerome Wolgin. 2007. Challenges of African Growth -
Opportunities, Constraints and Strategic Directions, The International Bank for
Reconstruction and Development/TheWorldBank)
http://siteresources.worldbank.org/AFRICAEXT/Resources/AFR_Growth_Advance_
Edition.pdf

Obiageli Ezekwesili (World Bank Vice President for the Africa Region), 2011.
Investing in Africa and Africa’s Capital Markets – Why Now? Keynote Address:
London Stock Exchange & FT Event, London Stock Exchange, London, UK – 6
October 2011) http://siteresources.worldbank.org/INTAFRICA/Resources/Speech-
Investing_in_Africa_and_Africa_s_Capital_Markets_Why_Now.pdf

The Economist, 2011. The lion kings? – A more hopeful continent (The Economist,
January 6 2011) http://www.economist.com/node/17853324
19 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

Prof. Akosua Adomako Ampofo, Director, Institute of African Studies,

delivering her welcome address

ure

Mr. Tito T. Mboweni delivering his lecture at the third in the series of the
AngloGold Ashanti lectures on business in Africa
20 | IAS-AngloGold Ashanti (Ghana) Lecture on Business in Africa

Prof. Ernest Aryeetey, Vice Chancellor,

University of Ghana, Chair of the third
in the series of the AngloGold Ashanti
lectures on business in Africa

Cross-section of audience at the third in the series of the AngloGold Ashanti

lectures on business in Africa

ure