Extend the embrace: stimulate investment.

It has been fascinating to read the on-going debate aroused by Anver Versi's editorial 'Let us embrace the African diaspora' (African Business, November 2005 issue). I would describe Mr Versi's comments regarding attracting support for the continent as entirely valid, but why limit the 'embrace' to the African diaspora?

In my experience, many in the West recognise their fundamental responsibility for, and have considerable sympathy with, the plight that Africa now finds itself in. The UK Prime Minister Tony Blair spoke for many when he described Africa's problems as "a scar on the conscience of the world."

I suppose that you might say that I have a foot in both camps. My mother was originally from Zambia, my father a Scottish engineer who worked in Africa for a number of years. Currently, I spend almost nine months of the year working in Africa on contract with development agencies, and I keep a home in North Wales.

But you do not have to have friends and families living in Africa, nor be Sir Bob Geldof, Bono or any other celebrity, to want a better deal for Africa. You might debate whether economic development can really alleviate the poverty found in many parts of the continent, but in my view there is no alternative to creating more wealth in Africa if you really want to get to grips with endemic hunger, disease and unemployment.

Creating wealth will inevitably require increasing investment throughout Africa, to realise the continent's potential in terms of agriculture, extractive resources, tourism and manufacturing. My point is that many like myself, who live in the West, want to play their part and contribute towards investing in Africa, but we have few real opportunities. Yes, I can place part of my pension fund with an 'emerging markets' trust fund, but that might not necessarily guarantee my money being invested in an ethical way, and my cash could be placed anywhere in the developing world--from China to Colombia.

Furthermore, I know of no Western government that makes any provision to offer tax relief on venture capital and private equity investments that their citizens might make in Africa. We have the crazy situation that I can claim tax relief from the UK government on various schemes such as Gift Aid (for charitable donations) or if I invest in certain UK based start-up companies, but nothing if I want to fund a business in Africa. It is really about time that the UK and other Western governments gave serious though to stimulating private capital inflows to Africa--not just from the African diaspora but anyone (including Messrs Geldof and Bono) who has an interest in the continent's development.

Ron McGuire

Addis Ababa, Ethiopia.