Partnership set to make Africa more powerful
A part of South Africa’s road infrastructure, where the World Economic Forum (WEF) 2013 was held recently. One area of public-private partnership could be improvement of roads. PHOTO | FILE
What you need to know:
- A public–private partnership (PPP) is a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies sometimes referred to as PPP or P3.
Washington. Africa’s economies have been experiencing annual growth rates well above 5 per pect in the last decade. There is widespread optimism about the region’s prospects for steady growth amidst a global economic downturn. However, as The Africa Competitiveness Report (ACR) 2013 cautions, serious challenges remain.
Overall, high economic growth rates have not translated into better living standards for Africans. World Bank estimates show that 48.5 per cent of sub-Saharan Africa’s population still struggles to survive on less than $1.25 a day.
Job creation has not kept pace with the booming population, which has reached the 1 billion mark – or 15 per cent of the world’s total – and is projected to increase to 20 per cent by 2030. And with falling labour productivity figures and a manufacturing sector that has remained largely stagnant since the 1970s, many African economies trail the rest of the world in competitiveness.
The Competitiveness Report, launched on May 9 during the World Economic Forum in Cape Town, shows that 14 out of the 20 least competitive economies are in Africa.
To get on a path of sustainable growth and shared prosperity, Africa’s economies need to improve their public institutions and infrastructure, deepen regional integration and provide their citizens with quality education.
Private and public sector collaboration is a key element in the drive towards competitiveness. By instituting the right legal, regulatory and economic frameworks, governments can lay the foundations for a business-friendly environment that allows firms to grow and regional integration to take place. More investments in science and innovation, as well as a focus on skills development and training, will give young Africans the skills they need to compete in the global economy - an urgent need in a continent that is home to 200 million people between the ages of 15 to 24.
Better roads, efficiently run ports, reliable electricity and other improvements in infrastructure can make countries more attractive to job-creating investors.
The private sector also has an important role to play. Businesses can support and advocate for reforms that can enhance competitiveness at the national level, and lend their support to initiatives that facilitate trade beyond national borders. Public-private partnerships can also lead the way in creative approaches to competitiveness.
“As African countries focus on increasing their competitiveness, they are testing new approaches - such as growth poles - to spur investment and sustainable growth,” says Gaiv Tata, director of Finance and Private Sector Development in the World Bank’s Africa Region. “Broadening access and entry into Africa’s regional markets can support job creation.” (Agencies)
