Report commissioned by Trócaire says increasing role of private sector in international development requires clarity on rules of ‘trade for aid’.

Robust measures aimed at preventing Irish companies from becoming involved in human rights abuses in Africa are “urgently needed”, according to a report published today.

In recent years, the private sector’s role in international development, particularly through investment, trade and policy design, has increased and altered the traditional “aid” concept.

However, concerns for conduct of business in Africa generally has led to calls for further clarity on how Irish activity can be overseen. 

A new report commissioned by Trócaire says that, given the increased emphasis on promoting Ireland’s economic interests in developing markets, “robust mechanisms for policy coherence for development and for the prevention of potential human rights abuses by private companies are urgently needed”. 

While Ireland maintains a strong record in international development, a briefing paper published in conjunction with the report – Where Aid Meets Trade: Ireland’s role in the changing development landscape in Africa – says more needs to be done in light of the changing relationship with Africa. 

“To ensure long term responsible investment of Irish businesses in Africa, the Irish Government must mitigate against the risk that Irish companies will become complicit in human rights violations by ensuring companies adhere to the highest possible standards of behaviour overseas,” it says, asking: “Where does the delivery of human rights fit within the drive to make profit for shareholders?” 

Trócaire’s research is a response to a growing international focus on private sector for development, and seeks to “further explore to what extent Ireland is following these trends in its engagement in development and trade promotion”.

The notion of “win-win” relationships where both donor and country benefit from increased trade requires careful management. “Aid for Trade” is more likely to benefit donor exports. 

Irish activity in the area has increased following the economic crash. Since 2011, annual Africa Ireland economic forums have been held in Dublin promoting networking and investment opportunities. Enterprise Ireland has opened offices in South Africa and Nigeria, while the Kenyan embassy reopened in 2014 “to accelerate the planned transition from ‘aid to trade’ in Africa”.

Trócaire estimates Irish business interests in Africa to be relatively small but it says trade is “significantly imbalanced in favour of Irish exports” by a ratio of just over two to one. 

In 2013, there was a total of €3.2 billion in exports to the continent, representing 1.5 per cent of Ireland’s total exports of goods and 2.1 per cent of Ireland’s total trade in services. Imports of African goods here were less than half of that, at €1.25 billion. 

While acknowledging Ireland’s “excellent reputation in promoting human rights internationally”, Trócaire’s paper, written by by Hannah Grene of Barncat Consulting, highlights a need for further diligence in specific areas. 

Bribery in particular is of concern, Ms Grene’s report notes. 

“The December 2013 report on Ireland of the OECD Working Group Against Bribery raised serious concerns about Ireland’s failure to prosecute a single case in 12 years under the legislation, and the undue length of time it was taking to investigate those cases which are currently open.”

That report also highlighted concerns that “many Irish business professionals may believe that some degree of unethical behaviour is permissible, if engagement in such activity helps them achieve business growth”.

“A first step would be to emphasise that bribery of foreign officials is an offence under Irish law, a fact which does not appear to be widely understood in the Irish business community.”

A Barclay’s Bank study found that 77 per cent of Irish businesses surveyed felt corruption was the biggest threat to doing business in Africa.