Without infrastructure there can be no development and this is where there are enormous opportunities for the private sector to do business in Africa.
“We need to establish Africa as an economic driver, it must become a continent where you want to do business,” said Grant Gelink, Chief Executive of Deloitte, in his opening remarks at a NEPAD Business Foundation networking forum held yesterday in Johannesburg.
In the current electricity crisis being experienced in South Africa, there was a significant lesson for the country to take away from the information shared at this forum. That was the example of Tunisia, where practically 100% of the electrification of that country has been achieved through small to medium size enterprises (SMEs), according to Mike Salawou of the African Development Bank.
In sub-Saharan Africa, there has been minimal involvement by the private sector, including (SMEs) and that is a major contributor to the lack of investment in infrastructure in the region. Everyone waits for governments to provide the services and that is why nothing happens.
“Public Private Partnerships (PPPs) have to be utilised to meet infrastructure needs,” said Lyson Muwila of the Development Bank of Southern Africa. “Government needs to deliver on the regulatory side to facilitate the projects and the partnership with the private sector will make things happen. Furthermore, as many of the projects cross borders, it is important for us to think not as a country but rather as a region,” he said, citing the example of the Lesotho Highlands Water Project.
According to Deloitte’s Grant Gelink, one of the stumbling blocks is the myriad of legislation and regulations that need to be overcome before projects can go ahead.
“Deloitte has a presence in most countries in Africa and will do whatever we can to assist NEPAD in accelerating the passing of fairly common regulatory frameworks to facilitate business development,” he said.
“Development on the African continent has been slow and fast-tracking that development is crucial for the continent to become self-sustaining. The initiatives of the NEPAD Business Foundation in establishing influential networks within the business community, both on the continent and internationally, are very important means to achieving that objective,” concludes Gelink.
27 February 2008
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