Building the foundations of Africa’s investment potential through public and private sector collaboration

[Business Action for Africa]

Omari Issa
CEO of the Investment Climate Facility for Africa (ICF)

The G8’s discussions will inevitably focus on how the world’s biggest economies can survive the current financial crisis. They will also debate its potential impact on developing economies that have enjoyed record levels of investment – including Africa’s average annual growth rate of six per cent over the last ten years.
The world is being shaken by a global economic crisis that is unprecedented in its causes or breadth. However, let us not forget that foreign investment is only one part of Africa’s growth equation. As such, we should not create an unwelcome distraction from those measures we can still improve from within.

ICF’s raison d’être is focused on doing just that – namely making the continent an even better place to do business by systematically improving practical struggles with bureaucracy, regulation, red tape and infrastructure. ICF is achieving its objectives by working with receptive governments, private companies and development partners.
We are supporting more than 20 projects in 10 countries and, while each tackles unique challenges, all are held together by a common bond of public-private partnership. Just as the Commission for Africa Report concluded, it is unrealistic to expect growth in social, economic and political gains made in recent years, or in their contribution towards the MDGs or beyond, through Governmental effort alone.

An example of collaborative public and private partners working together to improve the fundamentals that can hamper business growth can be seen in judicial modernisation projects in Mali, Sierra Leone, Rwanda, Tanzania and Zambia, all supported by ICF. Disputes may be an unavoidable aspect of life, but both public and private investors need assurances that any disagreements will be resolved simply, quickly, efficiently and transparently.

Of course, engaging the private sector in a time of tightened budgets does present challenges. However, support does not solely manifest itself in the form of financial contributions. There are also huge opportunities for the private sector to impart expertise and even time to simply share experience that inspires and drives entrepreneurial spirit.
The good news may be that the private sector can give so much more than money in order to improve Africa’s investment climate. But the even better news is that the rewards, for those governments and businesses that get involved now, will be profound.

Africa needs sustainable and holistic solutions, rather than quick fix policies developed in isolation. If Africa can create an enabling business environment now, as a result of partnerships between both the public and private sector, then the results will have a truly measurable impact on the investment climate.

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