Bankers, representatives of corporate entities, financial institutions and regulators from Africa including Seychelles and beyond are meeting here to discuss and find ways to address challenges affecting Africa’s ability to attract investments.

 The 2^nd African Export Import Bank (Afreximbank) annual customer due diligence and corporate governance forum being held over two days has been organised in collaboration with the Central Bank of Seychelles (CBS).

Vice-President Danny Faure officially launched the forum, which is taking place at the Eden Bleu Hotel, in the presence of the Minister for Finance, Trade and the Blue Economy Jean-Paul Adam, the governor of the CBS Caroline Abel, other distinguished guests and delegates.

The two-day meeting is taking place under the theme ‘Growing World of Corporate Governance and Customer Due Diligence in Africa - Collaborative Approach to Emerging Challenges’.

Addressing everyone present VP Faure said Seychelles specifically has a number of areas where we need to grow and learn.

“Our GDP per capita may be higher than most of the countries gathered here today, but our job is by no means complete. 

“Our institutions continuously strive to beef up legislation and promote changes in practice to better incorporate clearer and better governance frameworks and a culture of due diligence,” VP Faure said. 

He pointed out that earlier this month, the majority of nations in the world pledged to focus on the Sustainable Development Goals (SDGs) with the UN including ourselves. 

“Sustainability is instrumental to our future, and corporate governance and due diligence have their roles to play on that end,” he added. 

VP Faure further noted : “We often hear that Africa is a land of opportunity, where strong business prospects exist owed to the abundance of resources, where the principle of decreasing marginal returns suggest that one’s capital is best invested in a continent such as Africa. 

“Alas, the statistics with regards to investment in Africa is not reflective of this fact – something often referred to as the Lucas Paradox.

“This is why all of us in Africa have a collective responsibility to ensure that we put in place frameworks that will foster our growth,” VP Faure stressed.

Minister Adam thanked the Afreximbank and its board for the exemplary partnership Seychelles has benefitted from with the Afreximbank.

“Exemplary partnership because the Afreximbank has proven itself to not just be a fair weather friend but has been a partner of Seychelles when it was raining and when the sun was shining,” Minister Adam pointed out.

He noted that in 2008 when Seychelles was facing economic crisis the Afreximbank was there and today the partnership continues and it is important for us to remember the strength of this partnership.

“It is an honour for us to host this event particularly when customer due diligence and corporate governance are gaining increasing prominence on the global stage,” he said.

Echoing the words of Afreximbank president who had spoken before him Minister Adam reiterated that Africa and African countries should not only be role takers but role makers.

“When talking about due diligence and corporate governance it is extremely important that African countries very early on adopt best practices that are fit for Africa as well as for the world,” Minister Adam stressed.

“It is equally important that we look at due diligence and corporate governance as part of being competitive,” Minister Adam added, noting that Seychelles’ approach is to accept that an enhanced due diligence and corporate governance are part of doing business in Seychelles.

For her part Ms Abel said in spite of the  many opportunities that exist for business growth on the African continent, it has become increasingly clear over time that the business attracted may not have reflected the totality of opportunities that exist over the years.

“It has been difficult for us to shed the image of illegal practices and build confidence  in order to attract investments needed to harness sustainable development  for Africa,” Ms Abel pointed out.

She said for the future of the continent it is imperative that this trend is improved and we succeed in building the confidence which will attract more investment which will translate into greater economic activities for domestic businesses, thus the importance of such forums by the Afreximbank.

Dr Benedict Oramah, President of Afreximbank, believes that the scourge of financial crimes and the negative external perceptions they engender constitute a serious challenge to Africa’s ability to attract foreign investment. 

He said the forum gives African financial institutions the platform to develop a collaborative approach to tackling the continent’s unique customer due diligence and corporate governance challenges in order to increase confidence and attract more foreign investment.

According to Mr Oramah, lack of confidence in African institutions and poor corporate structures have been among the major reasons why many investors have tended to shy away from investing in the continent.

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