Effective Investment and Competitiveness

The importance of sub-Saharan Africa’s competitiveness, and of the effectiveness of investment, for donors, governments and investors is evident as one looks at the disappointing results of development strategies pursued to date. Africa’s disappointing economic performance has not been for want of donor assistance: net ODA nearly doubled between 1985 and 1992 from US$9.5 to US$18.3 billion, increasing from 5.1 to 11.3 per cent as a share of GDP. This assistance has failed to promote rapid and sustained economic growth, and donors must therefore rethink their strategies. Governments in Africa are showing increasing interest in the concept of competitiveness and realise that this is critical in attracting the private investment which is necessary for generating the new employment required by a growing population. Many investors and corporations do not perceive Africa to be an enticing investment location. Yet, on closer observation, it is evident that money is being generated in Africa and that opportunities are indeed emerging in various sectors.