Global private investment has surpassed 200 billion dollars annually, but only about one percent goes to Africa. Private investors are still not entirely bullish about Africa. A recent World Bank study has shown that internal policies, transportation practices and transportation costs for African exports have been more important in restraining African exports than OECD country trade barriers. Internal institutional, policy and capacity reforms are the keys to facilitating the transition to a trade and investment relationship for Africa with the world economy. We must be bullish on Africa, and we must be realistic.
Serious challenges remain.
Twenty-two of the world's 30 poorest countries are in Africa. A quarter of all African children will die before their fifth birthday from disease and malnutrition. Clearly education is also a core issue at the center of Africa's development challenge. From almost every study we have seen, the role of education in advancing a country's economic and political fortunes is tremendous. The World Bank found that investments in education for girls had the single highest rate of economic and social return for any development investment.