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Anchor Marco Werman speaks with Thomas Cargill of the British think tank Chatham House about the significance of today’s meeting between G8 leaders and the heads of seven African nations.

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MARCO WERMAN:  Today the G-8 did its annual reach-out to a group of not so rich countries.  G-8 leaders, including President Obama, met with the heads of seven African nations; Egypt, Ethiopia, Malawi, Algerian, Senegal, South Africa and Nigeria.  It was part substance, part photo op.  Thomas Cargill heads the Africa program at Chatham House, a British think tank.  Was this meeting to talk trade or talk aid Thomas?

THOMAS CARGILL:  A bit of both, but the balance has been gradually changing in recent years.  African leaders now are much more interested in trade, reflecting the massive progress that shielded a lot of Africa’s made over, over the last few years.

WERMAN: And how do African leaders warm up to this meeting with the G-8 leaders?  Do they feel the not invited invitees?

CARGILL: They do.  There is a sense that this is window dressing.  But in the wake of the financial crisis, many African leaders, particularly of the more powerful states, many of which are represented in Canada, such as Nigeria and South Africa, are really desperate to get the foreign investors in and so they’re willing to jump through some hoops if it means getting the ears of some senior businessmen and policy makers.

WERMAN: And against this backdrop a report came out this week from the consulting firm McKinsey and Company.  It gave a bullish picture of Africa saying its high growth rate, cell phone penetration and consumer spending all translates for Africa making it a natural destination for global investors.  Do you agree with that?

CARGILL: That’s right.  In fact, the McKinsey report is spot on and yet at the moment, G-8 countries, including the U.S., Canada and others don’t seem to be seizing these opportunities of the combination of the growing economic power, but also of the political weight that they have now.

WERMAN: So do you think the G-8 is out of step with the African is bullish message or are they focusing mainly on the dire economic situation that remains for many Africans on the continent?

CARGILL: I think the transition from the G-8 to the G-20 and then relative decline of the west since the financial crisis is very evident in the way that the G-8 is still clinging to a very developmental agenda on Africa.  They don’t seem to really be realizing how competitive the world is becoming and the opportunities, that particularly in Africa as their foundation of the global supply chain with 40% of the globes mineral resources and over a billion consumers, the role that Africa is going to play as an increasingly important arena for both the emerging powers of China and India and elsewhere.  But for countries like Canada and the U.S., U.K. and others who need to maintain their influence are going to be increasingly appealing to African countries.

WERMAN: Now we know China is heavily invested in Africa, what do you think are the main opportunities for western investors in Africa right now, specifically?

CARGILL: Well for the short term, natural resources are going to be key.  So we’re talking about oil, but also about minerals, iron ore, bauxite, and these kinds of things.  But increasingly both infrastructure, so building of railroads and also of airports, shopping malls, these kinds of things, and consumer goods as an increasingly vibrant middle class in many African states that are now demanding and wanting the products that we all take for granted in the west in terms of computer technology and so on.  So this is going to be the new frontier for many companies.

WERMAN: The value added manufacturing.

CARGILL: That’s right.

WERMAN: Thomas Cargill who heads the Africa Program at the British think tank, Chatham House.  Thank you so much for speaking with us.

CARGILL: Thank you.

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