● <B>What is FMO?</B>

FMO is an entrepreneurial development bank from the Netherlands. Its majority owner is the Dutch government (51%) and the rest is owned by commercial banks and the like. FMO invests in development finance with a large focus on Africa, the Far East and South America. It has an investment portfolio of 3,4 million euros. We invest in private sector projects, namely telecoms and infrastructure. FMO often shows other investors that a country is a sound place to invest. We have just launched a new fund for Mauritius, Madagascar and East Africa which invest in all kinds of sectors, such as tourism, agriculture and telecoms.

● <B>What is your impression of Mauritius?</B>

Mauritius has done very well to attract investors because they feel safe here. But things are changing. Perhaps it?s time that the authorities took a look at the investment laws to see if they are still competitive. Many other countries are also trying to attract investors. If the country wants to remain competitive as a financial hub, I think it must keep investing in risk-investment funds and to remain as transparent as possible. The tourism sector is doing well as it is a lovely country. Mauritius will have to increase its services in Information and communication technologies. It can also start thinking about creating more added value in flowers for export.

● <B>Mauritius is member of the Southern African Development Community (SADC). How important is regional integration? </B>

Regional integration is hugely important, as we have seen in Europe. It will be important to open borders for people to circulate freely and do business. The SADC customs union will offer advantages to member countries.

● <B>The past few years have seen several African countries showing encouraging growth rates. What can be done to stimulate this further?</B>

This is one of the main discussions I have with large groups who want to invest in Africa. The new generation is young, better educated and very ambitious. More power has to be given to the young generation. Another source of encouragement is also that people are showing far more support for Africa than they have in the past.

● <B>The food crisis seems to be hitting Africa quite hard. What is your take on the situation?</B>

I?ve travelled a lot in Africa recently and have seen the potential for food production. There is a need to invest more in agriculture and there is a lot of room for improvement but I find all this talk about a food crisis premature. In Cameroon, for example, everyone produces staples, vegetables and fruit. Nigeria has a population of 140 million and all its food is produced locally. It all boils down to capacity, infrastructure and willingness to invest in agriculture. Everyone can grow their food.

● <B>China has been investing massively in Africa recently. What are your observations on this new trend?</B>

I am also the co-founder of Africa Venture Capital Association and, for our last meeting, which was held in Gaborone, Botswana, I had invited a very interesting keynote speaker from China. He explained to us that only 2% of the Foreign direct investment coming from China is going to Africa. The rest of it is going to Europe, India and America. It is also important to note that the Western world has really put Africa down for a very long time. When I started out with investment funds and banking in 1996 I tried to interest EU banks and companies to invest in Africa. A lot didn?t want to. Everyone was saying very negative things about the place. It?s only in the past three years that the continent has started to become popular.

● <B>The Chinese are opening business centers all over Africa. One is being built here but Mauritians are worried about the socio-economic impact... </B>

I can understand their preoccupations but people must remember that the Chinese have very effective production capacities. Africa is less efficient in production but it has other advantages in terms of raw materials and agriculture. I think that a Chinese business center can be beneficial to local populations. It will be important though for the Chinese to try to integrate the societies they work in.

● <B> And to what do you attribute Africa?s newfound popularity?</B>

I would say that it?s due to several factors, such as the demand for raw materials, the return of the diasporas and the structuring of attractive investment laws. FMO has around 40 investment funds in Africa and the great majority of them are showing very good returns.

● <B>What must Africa do if it is to make this growth sustainable?</B>

The most important thing will be the fight against corruption. Many investors want to invest but they are scared of the corruption. African leaders should also look at improving customs handling and telecommunications and encouraging more transparency and good governance.