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Periodical article | Leiden University catalogue | WorldCat |
Title: | Investing for long-term growth in Africa |
Author: | Oshikoya, Temitope W. |
Year: | 1997 |
Periodical: | Internationales Afrikaforum |
Volume: | 33 |
Issue: | 2 |
Pages: | 157-162 |
Language: | English |
Geographic term: | Africa |
Subjects: | investments economic policy |
Abstract: | While macroeconomic reforms are essential for recovery and growth, getting on with sustainable development calls for strategies well beyond the framework of adjustment programmes. In this context, the importance attached to increasing the magnitude and productivity of investment must be underscored. Africa's investment ratio remains well below 18 percent. Both domestic and foreign investment must be mobilized to effectively address long-term sustainable development issues. Some general strategies for encouraging private investment are discussed in this article. First, private sector development requires a more favourable and competitive business environment. Second, public sector management will need to be improved to reduce the crowding out of the private sector, establish the credibility of reforms, and improve services essential to a competitive private sector. Third, financial sector reform needs to be accelerated by restructuring the banking system, strengthening prudential regulation and supervision, as well as deepening the capital markets. Fourth, while successful reform will depend largely on various efforts of African countries, external assistance remains vital to help reforming economies preserve macroeconomic gains and encourage the private sector to invest in long-term growth. Bibliogr. |