UN's Annan warns of new scramble for Africa

BANJUL - United Nations Secretary-General Kofi Annan has warned against a new exploitative "scramble for Africa" as investor interest surged in the continent.

Addressing an African Union summit in Gambia, Annan said foreign direct investment into Africa had increased by 200 per cent during the past five years but activity was still focused on extracting natural resources rather than developing local economies.

In a reference to the 19th century rush by European countries to grab colonies in Africa, Annan said:

"We have to ensure that this new scramble for Africa benefits the women and men of the continent - and that the agreements that are signed with foreign investors are fair, equitable and stand the test of time."

Annan said that despite many achievements over the last decade in development, human rights, debt relief and resolving its conflicts, Africa still had huge obstacles to overcome.

The number of Africans living in extreme poverty was increasing, HIV/Aids was spreading, food security still eluded Africa and the environment continued to degrade.

Conflicts raged in Darfur, Ivory Coast, Somalia and northern Uganda, many governments suppressed opponents and the press and there was still large scale corruption.

"I believe that to keep building on the progress we have achieved so far, we have to do far better in building a comprehensive strategy for the future," he said.

- REUTERS