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Advancing Africa’s Private Sector Working Group Series
The Advancing Africa’s Private Sector Series is an effort to bring together serious scholars, practitioners, and policymakers to propose practical new ways of encouraging business growth on the continent. Africa’s future prosperity depends in large part on growing private businesses and unleashing the continent’s vast but still untapped entrepreneurial energy. The success of democracy also requires an independent business and middle class free from dependence on government largesse and patronage. There is a critical role for both foreign investors and public policymakers in helping to encourage the private sector in Africa. These are key areas of CGD’s research and the focus of our Emerging Africa Project.
The first group of the series focused on Supporting Business Climate Reforms and was chaired by senior fellow Todd Moss. It considered new innovations in aid provision to recommend new policy instruments that structure incentives to encourage business climate reforms—namely, a Doing Business Facility that would provide reform assistance to good performers based on objective indicators. The final reportof the working group is now available.
The Supporting Business Climate Reforms Working Group
Africa remains extremely difficult for entrepreneurs. Donors are increasingly targeting assistance to address the investment-climate constraints that hinder private-sector growth. This report lays out the case for promoting investment climate reforms more strategically, various options for implementing a system to do so, and possible institutional homes for the proposed facility.
What's keeping private business from flourishing in Africa? On the basis of unique enterprise surveys, Vijaya Ramachandran and her co-authors identify poor roads and unreliable power as major physical challenges; ethnic segmentation and the economic predominance ethnic minorities further constrain the business environment. The author show how investing in infrastructure and improving access to education can help bring about a broad-based business class in Africa.