NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Friday, July 1, 2005

The capability of state institutions is just as important for the development of a competitive business sector and economic growth, and this is where the developed nations can make a huge contribution. However, rather than transferring off-the-shelf solutions, the developed nations must transfer skills and competencies that allow the African authorities gradually to build their own practices based on their own experiences. As the Commission for Africa has noted, this takes time and commitment. The moment to start is now. The commitment must be sustained. Both donor governments and African governments should ensure that the regulatory and institutional issues are addressed through training programmes and continuing support.

A thriving business sector, led by capable and highly motivated African entrepreneurs, will lie at the heart of spurring economic growth and reducing poverty. Vodafone has found, in the mobile telecommunications sector, that the emergence of private resellers has acted as an economic stimulus even in very poor rural communities.
Commentary found here.