Private Sector - Key to Economic Growth

The Economic Commission for Africa reports "...The private sector only gets a brief mention in the Millennium Development Goals. Yet it is business – entrepreneurs, employers, investors and workers – who are best positioned to help Africa achieve the Goals...One area where private sector intervention could really make a difference is boosting the use of information and communication technologies (ICTs) as proposed in Goal 8...ICTs are crucial for developing countries. They help reduce costs, improve productivity and increase access to domestic and international markets, thus contributing to economic growth and competition in the global economy...It’s indisputable that the private sector has played a major role in the evolution of ICTs, particularly in the mushrooming mobile phone networks. Nigeria has the world’s fastest growing mobile market, increasing by about 143 percent in 2003. That’s the kind of growth that will bring the MDGs within reach...So why is Africa finding it hard to achieve the necessary growth rates? Tariff barriers and border restrictions, heavy and indiscriminate taxation, complex, time-consuming regulations and bureaucracy have all played a part.Vigorous entrepreneurship can be seen in the informal sector all over the continent but these constraints, as well as disincentives discouraging investors, prevent small operators from thriving and expanding their businesses to become energetic - small and medium-sized enterprises and the engine of African growth.Africa does not just need growth per-se, but specifically growth in labour-intensive sectors that leads to job creation and wage improvement. This link is vital because the fastest exit from poverty is through employment and higher salaries..."