Calls for private sector in Africa
Published: 06 December 2010
„European Union development policy needs to modernise its aid. We need to focus on private sector activity, regional integration and international trade,“ confirms José Manuel Durão Barroso, President of the European Commission during the opening ceremony of the European Development Days (EDD) in Brussels. Also the Green Paper on EU development policy stresses out the important role for the private sector. “No country has grown out of poverty by relying on foreign direct investment alone,” says Jyrki Koskelo, official of International Finance Corporation.
However there also many problems that companies who want to invest in Africa have to face. High level of corruption is one of the most known one. According to Nigerian President Olusegun Obasanjo it costs Africa about 150 billion Dollars every year, which is about 25% of African national income. Other problems are discontinuity in politics and lack of assessment and evaluation reports on the African market, states Giorgia Giovanetti, one of the authors of European Report on Development.
Talking so much about the key role of private sector in development, there are interestingly only few speakers at the EDD that represent the businesses themselves.