A PROMINENT British business leader called today on the G8 leaders to reach agreement on fairer trade rules and international investment in Africa at this week's Gleneagles summit.

Charity alone will not make poverty history in Africa, said director general of the Confederation of British Industry, Sir Digby Jones.

Sir Digby said it was "hypocrisy" for countries to provide aid to the poor world but to insist on the retention of tariffs and agricultural subsidies which make it impossible for African businesses to compete on a level playing field.

He called on every G8 country to commit to reducing international trade barriers at this week's summit.

But he also issued a call for African states to root out corruption, saying that some of the continent's leaders "think it's their birthday" when the West hands over vast sums in aid.

The CBI boss has backed Prime Minister Tony Blair's call for a package of trade, aid and debt relief to assist the world's poorest countries, many of them in Africa. But in a speech to business leaders in London today, he will make clear that he regards trade reform as the priority.

Failure to reform the world's trade rules would mean Africa remaining what Tony Blair termed a "scar on the conscience of the world" for another 20 years, he will say.

Africa's farmers need "deep structural reform" to the Common Agricultural Policy and US farm policy to bring down the barriers blocking them from access to world markets.

Sir Digby is expected to say: "The UK is the global champion for free trade. I call on France and the US to follow our example. Every single G8 country has a duty to reduce barriers to international trade in a fair and balanced way.

"Business can be a force for good around the world, but 'free trade' has to mean 'fair trade'. Developing countries in the grip of poverty must be granted a level playing field."

He will warn: "If all we offer is charity, then we will be doing the same next year and every year.

"We must offer equal trading status and look to invest in a sustainable, prosperous future for Africa.

"Those who want to provide charity without making trade fair are hypocritically giving with one hand and taking with the other."

Fair trade will spark a "virtuous circle" in which growing wealth will lead to more investment in much-needed infrastructure such as roads, healthcare and education for Africa, he will predict.

"Greater prosperity provides infrastructure improvements, a healthier and better-educated workforce and this virtuous circle will in turn help attract more inward investment.

"Unless this occurs, African poverty will still be the scar on the conscience of the world in another 20 years time - with the world's generosity still doing no more than limiting African poverty, not eradicating it."

Sir Digby will say that action by the rich world must be matched by a readiness by African states to tackle the corruption which deters international investment.

"Too often charitable funds get lost in the murky depths of corrupt African regimes and do not filter through to those that need them the most," he is expected to say.

"Open, transparent and accountable governance in Africa also helps attract valuable foreign direct investment. This international investment would reinforce a growing role for the African private sector, helping uphold sustainable economic development.

"Just giving aid must make some African leaders think it's their birthday."

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