A strong african private sector for sustainable development and inclusive emergence

During the last two decades, Africa has experienced a dynamic acceleration of its economic growth. The GDP growth rate has exceeded 7% in several countries. In fact, between 2014 and 2017, six African countries were among the twelve fastest-growing economies in the world. This performance is the result of high-level ambitions set by African governments in their emergence plans and the African Union Agenda 2063.

These recent developments, however, require a careful look: on the one hand, at the diversification of the sources of growth – towards strengthening Africa’s long-term resilience – and on the other hand, at its quality, towards improving the quality of life for Africa’s population, finally eradicating poverty in all its dimensions, and rapidly reducing inequality.

 It is important, in this regard, to analyze the resources needed to implement emergence plans, which the private sector serves as the engine of economic growth. In addition to supporting African governments in high value-added investments, the private sector should also contribute to social and environmental emergence, through creating millions of decent jobs, better income redistribution, and ensuring environmental sustainability.

More efforts need to be made to create a climate conducive to private sector development, fostering a strong network of small and medium-sized enterprises, or SMEs. These African SMEs, which represent more than 90% of Africa’s economic fabric, still suffer from numerous constraints that make them less competitive in global and regional markets, including access to energy, finance, and skilled labor.

It is now time for African states, as well as the private sector, to play a more catalytic role than in the past. The United Nations Development Programme reiterates its commitment to support the continent?s resolute ambition to bring out genuine African champions, attract more investment, and promote inclusiveness. These are the challenges presented to this third edition of the International Conference of Emergence in Africa, which is a great opportunity to share best practices that have proven to accelerate progress for the people of the African continent.

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