Barack Obama greets members of the Ghanaian Parliament in Accra.
Barack Obama greets members of the Ghanaian Parliament in Accra.

Obama tells Africans to be self-reliant



ACCRA // Africa must solve its own problems, but America is standing by to help the continent out of poverty, end wars and fight disease, Barack Obama, the president of the United States, said in an address to the Ghanaian parliament yesterday. In his speech, Mr Obama articulated his policy for Africa, the homeland of his father and a continent his administration had focused little attention on since his inauguration in January.

"I do not see the countries and peoples of Africa as a world apart," Mr Obama said. "I see Africa as a fundamental part of our interconnected world, as partners with America on behalf of the future that we want for all our children. That partnership must be grounded in mutual responsibility. We must start from the simple premise that Africa's future is up to Africans." Mr Obama's 24-hour stopover in Ghana came on the heels of a G8 summit in Italy in which leaders of the world's largest economies pledged US$20 billion (Dh73.4bn) to help farmers in the developing world improve their agricultural output.

Before the speech, Mr Obama met with John Atta Mills, the recently elected Ghanaian president, and visited a local hospital. Mr Obama and his wife, Michelle, also toured a former British slave fort and held a poignant moment of silence on the spot where African slaves boarded ships bound for the Americas. Mr Obama, the first African-American president of the US, chose Ghana for his first Africa visit because of its recent history of democratic elections. But Mr Obama spoke to the whole continent in a speech that was meant to reach Africans just as his speech last month in Cairo targeted Muslims.

"I have the blood of Africa within me, and my family's own story encompasses both the tragedies and triumphs of the larger African story," he said inside a large conference centre draped with Ghanaian flags in Accra, the capital. "Here in Ghana, you show us a face of Africa that is too often overlooked by a world that sees only tragedy or the need for charity." A gospel choir welcomed Mr Obama with a rendition of the US national anthem. Mr Mills, dressed in a shiny white robe, told the US president that they share a common vision for Africa.

"Mr president, you and I stand here today because just over six months ago our respective compatriots voted for change," said Mr Mills, a former opposition leader who won a close election in December. Mr Obama said his administration would support democratic regimes. He praised opposition groups in Kenya and Zimbabwe, which held flawed elections and formed coalition governments. "Make no mistake, history is on the side of these brave Africans, and not with those who use coups or change constitutions to stay in power," he said. "Africa doesn't need strongmen, it needs strong institutions."

Jerry Rawlings and John Kufor, two of Ghana's former presidents listened to the speech along with members of Ghana's parliament, dressed in kente cloth, a traditional loin cloth of yellow, black and green worn over one shoulder. In a brief interview after the event, Mr Kufor said America's support is key to helping Africa overcome poverty. "Who should determine his own life but himself?" he said. "Africa must lift itself up by its bootstraps, but Obama added that he will give us support."

Kojo Appiah-Kubi, a member of parliament, said Africans are up to the challenge of tackling their own problems. "We believe we can make it," he said. "We are still developing and we need assistance, but we think we can come up with our own home-grown solutions." Mr Obama said regional African organisations such, as the African Union, need to play a strong role in ending conflicts in Somalia, Congo and Darfur, which he labelled a genocide.

"Africa is not the crude caricature of a continent at war," he said. "But for far too many Africans, conflict is a part of life, as constant as the sun. There are wars over land and wars over resources. And it is still far too easy for those without conscience to manipulate whole communities into fighting among faiths and tribes. These conflicts are a millstone around Africa's neck." Ghanaians welcomed the US president's arrival on Friday night with colourful dancers and drummers at the airport. Security was tight during the visit as hundreds of flag-waving Ghanaians and well-armed security forces lined the main streets.

After his speech, Mr and Mrs Obama and their two daughters, flew in a helicopter to Cape Coast Castle, a British fort built in 1653. The Obamas toured the United Nations World Heritage site and saw the dungeons, which housed up to 1,500 slaves at a time before they were shipped to the Americas. "It's a moving experience, a moving moment," Mr Obama said after touring the castle. "It helps teach all of us that we need to fight against the evils that sadly still exist in this world."

mbrown@thenational.ae

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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