It is irrefutable that the private sector plays an active role in the economy globally. Many governments realise the importance of facilitating the private sector through reforms to reduce risk exposure.
Africa is an attractive destination for many foreign investors for numerous reasons. Many sectors on the continent remain in need of funding and technology. Despite the continent’s efforts to promote the expansion of the agriculture sector, processing agricultural products locally is evidently an issue.
Dialogue between governments and the private players is more important than ever for African economies to flourish. The continent faces a number of challenges such as power shortages, forex and, not to mention the bureaucracy involved in setting up companies. Engagement with the private sector to combat such issues could yield positive results.
The continent has experienced rapid growth in the informal sector due to lack of financial resources and poor regulation. In fact, obtaining accurate statistics is somewhat complex. Governments must find a way to bring the informal sector on the books and provide substantial support for the growth of these businesses. In return, governments will generate more revenue through taxation.