Africa. – We are witnessing an incredibly interesting development, says an enthusiastic Espen Søilen, department director for internationalization and social economics in the Confederation of Norwegian Business and Industry (NHO).

Africa has in a short time become one of the areas of the world with the strongest economic growth. Now more and more politicians and business people are getting their eyes on the opportunities that they offer. This time it is about business, not assistance.

- The western economies are about to stagnate – and economic growth is now taking place in other parts of the world. Africa, which has long been in a backwater, has suddenly become a very exciting growth area, says Søilen.

Zuma to Norway?

Several sources have told Ny Tid that Norway may be visited by South African President Jakob Zuma at the turn of the month August-September, but this has not yet been finally confirmed by the Ministry of Foreign Affairs. With him, Zuma will in case have a business delegation to meet Norwegian business people in Oslo. Innovation Norway invites to a seminar on South Africa 1. September.

- There will be a business seminar in connection with the visit. Oil protection, maritime surveillance, information technology, renewable energy and tourism will probably be on the agenda, says Kjell Grønn, coordinator of the seminar at Innovation Norway, but emphasizes that the scheme has not yet been fully clarified.

The Ministry of Foreign Affairs states that the program for the visit is being prepared these days and that it will be published during the summer.

As far as Ny Tid is aware, it is also intended that one or more agreements between Norway and South Africa will be signed during the visit. This will probably facilitate increased economic relations between the countries in the years to come.

Gather in Oslo

In the same month as South Africa's visit, a whole crowd of African business people and politicians gather in Oslo. September 29 The Norwegian-African Business Summit will be held. Trade ministers from several African countries are expected, and a number of African ambassadors are participating. Among the speakers are Emmanuel Nnadozie, chief economist at the United Nations Economic Commission for Africa, and Dawda Jobarteh, director of the prestigious Africa Progress Panel. In addition, directors from African, European and Norwegian companies come to share their experiences.

- It will be a revival meeting, a unique gathering for Norwegian and African business. We hope there will be many new business connections. Here, the manager of Kaffebrenneriet can meet the Minister of Trade from Rwanda, who produces some of the best coffees in the world, says project manager Eivind Fjeldstad.

During the conference September 29, the new organization Norwegian-African Business Association (NABA), which Fjelstad is in charge of, will also be launched. The association aims to promote business cooperation with African countries.

- Most European countries have long had chambers of commerce aimed at Africa. In Norway, we have lacked something like this, and now we believe the time is ripe for an initiative. The Norwegian-African Business Association will act as a door opener for Norwegian companies in Africa, but also help African companies find a market in Norway, says Fjelstad, who is employed by the International Law and Policy Institute (ILPI) to start the project.

Giske and Solheim on tour

Later in the autumn, probably in November, it is Trond Giske (Minister of Trade and Industry) and Minister of the Environment and Development Erik Solheim (SV) who packed the suitcase. They travel on an African tour with a Norwegian business delegation.

When Ny Tid went to press, the program for the trip was not yet ready, but the ministers will probably visit Ghana, Angola and Mozambique. These are important countries for Norway, points out economist Leo A. Grünfeld. He is chairman of the board of the company Menon and has especially worked with international investments.

Facsimile: New Time July 22nd.

- This sounds like a sensible itinerary. Angola is completely natural because Norway has such strong interests there – because of the oil. Ghana is relevant both because of Norwegian interests and because the Ghanaian economy is one of the most successful in West Africa. Mozambique is interesting because of Norway's long aid traditions in the country, and because we have seen an economic success story here after there was peace in the country, says Grünfeld.

In Ghana, a new Norwegian embassy opens on Thursday 4 August. The reason for the establishment in Ghana is large oil discoveries on the Ghanaian shelf.

The ministers should also visit South Africa, says Grünfeld – who receives support from NHO.

- We could also have imagined that they traveled more in East Africa, where many of our member companies are engaged – and where a lot of exciting things are happening at the moment, says Espen Søilen.

Bernander on tour

NHO itself has activities in several African countries, including a collaboration with its sister organization Chamber of Commerce and Industry of Angola (CCIA).

- We help them build an employers' organization. Both to ensure orderly pay and working conditions – and to strengthen work in health, environment and safety. Not least, we provide input on how companies can protect themselves against unrest, strikes and illegal actions, says Søilen.

On August 10, NHO Director John G. Bernander travels to Africa with Kristin Clemet, who is the chair of the Norfund State Investment Fund. Among Norfund's main focus areas are precisely East Africa and southern Africa.

On June 21-22, Norfund organized the conference New African Connections in Oslo in collaboration with Norad, the Ministry of Foreign Affairs, Care and Dnb Nor. "The enormous opportunities and potential that now exist in Africa have created a new sense of optimism," said former UN Secretary-General Kofi Annan as he opened the conference.

Vigorous growth

It is the strong economic growth that is causing many to open their eyes to Africa. Six of the ten economies that have experienced the strongest growth in the world in the last decade are sub-Saharan Africa. It shows an analysis conducted by the reputable economics magazine The Economist. In the coming years, Africa's growth is expected to accelerate and pass growth in Asia before 2015.

- Much of what is happening now in Africa is related to developments in Asia. Asia's foremost resource is labor, while there is a screaming demand for natural resources. This is why China and other Asian countries have now entered Africa so heavily. They will secure access to resources in the years to come, says Søilen.

Chinese players have been investing heavily in Africa in recent years. They initiate major infrastructure developments and provide expertise and investment. For companies from small Norway, this can present challenges.

- In some areas, Chinese companies dominate. Norwegian Veidekke has, for example, experienced that Chinese players have entered, taken over contracts and entered into enormous agreements with the authorities in African countries. In such cases, it is difficult to compete. At the same time, Norwegian companies have outstanding expertise in a number of areas, such as energy efficiency and the utilization of oil resources. This will be a market for Africa in the future, says Søilen.

Leo A. Grünfeld of Menon believes China has found a success formula for its investments in Africa.

- Norwegian players are obviously weaker than their Chinese competitors. The Chinese have a comprehensive regime for such activities, where they provide both financial support and a large number of their own engineers, and they take control of the entire project. So they have an effective package solution. Actors from other countries often come up with much more complicated development assistance structures, he says.

Several major in Africa

However, a number of large Norwegian companies have already established themselves in Africa. For example, Yara has invested in fertilizer production, Hydro in hydropower and aluminum and Jotun in paint production. Not least, Statoil and the Norwegian oil industry have activities in a number of African countries. But there is also business potential in other areas.

- Among other things, there are great opportunities in developing mobile networks in Africa, for example for Telenor. In addition, suppliers in the Norwegian offshore industry can win in countries such as Nigeria and Angola, says Grünfeld.

Eivind Fjeldstad in NABA hopes that it will also be a financial benefit for African companies in Norway. In the first instance, it will mean the sale of agricultural products, an export that is currently small. In 2010, only 1,7 per cent of imports to Norway came from Africa, according to statistics from Statistics Norway. In comparison, imports from Europe, Asia and America were 70,8 percent, 15,5 percent and 9,5 percent, respectively.

- It is strange that there are no more imports from Africa when trading conditions are so good. But I think it will turn around, and that there will be far more trade with Africa in the years to come. I hope we can contribute to such a development, says Fjeldstad.

Today, Norway provides customs and quota exemptions for imports from 64 so-called least developed (LDCs) and low-income countries. But in order to increase trade, Norway must not only provide good conditions for imports from the poorest countries, believes Leo A. Grünfeld.

- We have practically no imports from poor countries to Norway. The system of zero tariffs for the least developed countries is pure and simple decoration policy, which makes up Norway's image. If Norway really wants more imports from Africa, it is necessary to give trade advantages to countries that have a larger agricultural industry than the very poorest, he says.

As Norway now establishes stronger economic ties with Africa, it remains to be seen what the Africans will be left with.

Rare visit to Africa

Africa is rarely the target when the King's House, the Prime Minister or the Minister of Trade and Industry travel abroad with trade delegations.

By TORBJØRN TUMYR NILSEN

Study Visit. When Minister of Trade and Industry Trond Giske (Labor Party) travels to Africa this autumn with a Norwegian business delegation, this is one of the rarities. Norway's Royal, Prime Minister and Minister of Trade and Industry tend to take delegations elsewhere. In the last ten years, the most visited countries have been India, Japan and China. These countries have each received three such visits, according to an overview prepared by the Ministry of Trade and Industry for Ny Tid. The only African country on the list is South Africa, which in 2009 was visited by the royal couple and a Norwegian business delegation.

"Things don't happen until we've seen you"

Diaspora Network is pleased that Norwegian business has opened its eyes to trade with Africa. Now they are waiting for the government to come to terms with it.

BY TORBJØR TUMYR NILSEN torbjorn@nytid.no

Trade Cooperation. – It was about time. All that is needed is for Norway to become more interested in trade with Africa.

That's what Felix Osok, spokesman for the recently created Diaspora Network, says. The network's goal is to convey the knowledge, experience and contacts the various diaspora communities possess in Norway.

Osok believes that Norwegian business has finally opened its eyes to Africa as a continent of opportunity. He has even arranged a business seminar in Kenya for Norwegian companies wishing to establish themselves in East Africa. The goal was to put the Norwegians in contact with policy makers, investors, business and the embassy communities in Kenya.

MUST CHANGE TRACK: – Norway should focus less on aid and more on trade, says Felix Osok in Diaspora Network. PHOTO: PRIVATE

- Why do you think it has taken so long to increase interest in Africa?

- There are several reasons. The first is that the countries in question have undergone a positive democratic development. It is important to create stable conditions for investment. In addition, the authorities in Kenya and Tanzania, for example, have actively facilitated foreign investment. Today, it is much easier than before for companies to establish themselves.

- Has Norwegian policy also changed?

- In Norway, relations with Africa have focused on aid instead of trade and business cooperation. A lot of money disappears in aid projects, and the results are difficult to measure. Trade, on the other hand, we know gives results.

- Is it Norway that needs Africa, or Africa that needs Norway?

- Norway is a small country when it comes to trade. As Norway is not a member of the EU, bilateral agreements with African countries are important. By virtue of being a member of the EEA, Norway is able to enter into several such bilateral agreements. In light of the recent economic crisis in the euro countries and the United States, Norway will have to turn its back on them and instead focus on Africa and China. It is clear that Norway needs Africa the most, not the other way around. In addition, there is a high supply of raw materials and cheap labor in these countries.

- What do you miss in the Norwegian approach to African countries?

- As I said, there should be less focus on aid and more on trade. Norway must take African countries seriously as serious trading partners. Today there is a lot of talk and very little action. 10 years after the Doha Round of the WTO, a process of creating a trading system that discriminated between rich and poor countries by building up the business community in developing countries, the result has been worse than before. The Norwegian government has had the opportunity to do something in these negotiations, but instead has chosen to contribute to maintaining the unfair trade barriers, such as on agricultural products.

- In the overview of official Norwegian state visits in recent years, we find few African countries. What do you think about it?

- It's too bad. In Africa it is said that "things do not happen until we have seen you". There should therefore be more Norwegian state visits to the continent.

- As long as the government does not change its view of Africa, and encourages the business community and other actors outside the "preferred" aid actors to open their eyes to Africa, I am afraid the trend will continue. There are also many indications that Africa is turning its back on the EU and the US and would rather cooperate with other African and Asian countries, mainly China.

This is the introduction to the main issue in the weekly magazine Ny Tid's issue 22 July-4. August 2011. Read more in this week's issue, on sale in stores across the country. Get the edition sent for free by subscribing (Abo@nytid.no)or click here.