Access to Global Capital Initiative: Corporate and Investor Roundtable

Event Context & Commemoration

• The Milken Institute's "Investing in Africa" working group paused to honor victims of the West Gate Mall terrorist attack in Nairobi, Kenya.
• Several members of the working group lost friends or loved ones in the attack, which the group noted was a tragedy impacting multiple nations and individuals globally.
• President Paul Kagame of Rwanda addressed the audience, offering solidarity to the Kenyan government and people, and affirmed the continent's capacity to overcome the crisis.

Strategic Initiatives & Partnerships

• The "Access to Global Capital Initiative," conceived by Seth Marin (CEO of LiquidNet), aims to accelerate capital flow into emerging markets by linking multinational firms with reform-oriented governments.
• The initiative currently operates with three pilot countries: Indonesia, Colombia, and Rwanda.
• A new partnership has been established between the Milken Institute and the Tony Blair Institute for Good Governance to incentivize and implement governance reforms in target nations.
• In Rwanda, the Institute is assisting in data collection to include the nation in global indices (e.g., the Global Opportunity Index) to improve investor transparency.
• The Milken Institute has facilitated over 25 active connections with the Rwandan Development Board, some of which have already resulted in significant job and investment commitments.

Economic Data & Macro Trends

• For the first time in 200 years, emerging markets now account for a larger share of the global economy than the US, Europe, and Japan combined.
• Emerging markets are projected to hold over 70% of the global economy in the future.
• Rwanda achieved 8% annual economic growth over the last five years.
• Rwanda has reduced child mortality rates by 70% in recent years.
• Mobile phone penetration in Africa grew from 2% in 2000 to a projected 84% (with Strive Masiyawa targeting 100% by 2015).
• The US faces a projected shortage of nearly 70 million qualified technology and skilled workers over the next decade.
• The global middle class is shifting, with India expected to host the world's largest middle class; 29% of India's middle class expects their children to earn PhDs.
• Africa's population is young, with the continent's average age significantly lower than Japan's current average of 40.
• In Mozambique, access to electricity rose from 8% to 37% within the last 10 years.
• In Botswana, mobile phone penetration reached 150%, indicating an average of nearly three devices per person.
• Solar-powered phone chargers now generate more revenue for Econet Wireless than the sale of cell phones in certain African markets.

Governance & Development Philosophy

• Mike Milken posits that prosperity requires three components: extending life quality (healthcare), increasing knowledge (education), and recruiting talent (immigration).
• Tony Blair's Africa Governance Initiative (AGI) operates in up to 10 African countries, focusing on practical implementation and capacity building rather than just policy formulation.
• AGI teams work alongside national staff to develop institutional capacity, with the goal of eventually phasing out donor dependency and enabling countries to manage their own destiny.
• Strive Masiyawa (Chairman, Econet Wireless) emphasized that investment requires political stability, consistent policy, rule of law, and a skilled local workforce.
• Strive Masiyawa noted that surviving high-inflation crises (e.g., Zimbabwe's 500 billion percent inflation) requires high-quality leadership and the ability to maintain team cohesion during extreme economic instability.
• President Kagame highlighted that Rwanda's success stems from a shift from a "donor-recipient" relationship to a "partnership" model, insisting on local ownership of projects and government systems.
• Rwanda is pursuing regional integration (East African Community) to expand its 11-million-person market to a 135-million-person regional market.

Sector-Specific Opportunities & Infrastructure

• Strive Masiyawa identified renewable energy, specifically solar, as the critical solution for powering mobile infrastructure in regions lacking grid access.
• President Kagame emphasized that while infrastructure is vital, human and institutional capacity building is the primary prerequisite for sustainable growth.
• Regional integration efforts include a customs union, a common market, and potential future political federation among East African nations (Kenya, Uganda, Tanzania, Rwanda, Burundi, and potentially South Sudan).
• Major infrastructure projects gaining momentum include the East African Railway, the Inga hydroelectric project in the Congo, and various power distribution networks under the "Power Africa" initiative.
• President Kagame clarified that Africa's focus has shifted from escaping the "poverty trap" to actively pursuing "wealth creation" and prosperity.
• Tony Blair argued that the "energy of Africa" is currently palpable due to a new generation of civic, business, and political leaders distinct from previous eras.
• Mike Milken noted that Africa possesses both extensive natural resources and a young, educated population, creating a unique opportunity comparable to the development trajectories of Singapore and South Korea, albeit without a historical template.

Forward-Looking Statements & Future Actions

• The Milken Institute plans to travel to Indonesia next week to expand the Access to Global Capital Initiative.
• The Institute intends to convene a follow-up session in London at the Milken Institute Summit to continue dialogue with investors and government representatives.
• Plans are underway to recruit a group of international investors to visit East Africa and Rwanda within the next six months.
• Strive Masiyawa predicted that 100% mobile penetration in Africa could be achieved by 2015.
• Tony Blair expressed optimism that Africa could replicate the economic success of Latin America 20 years ago but with stronger governance to avoid ideological pitfalls.
• Mike Milken suggested that Africa could be the first region to effectively deploy solar energy at scale, potentially leading global transitions due to the longevity of solar potential (4+ billion years).