Köhler stresses importance of “vibrant” private sector for growth in Africa

• Pages: 364-365

Page 364

Following are edited excerpts from welcoming remarks prepared for delivery by IMF Managing Director Horst Köhler to the World Bank Group–IMF Africa Club in Washington, D.C., on October 30.

On behalf of the Executive Board and the staff of the IMF, I would like to welcome you all to Washington, and thank the World Bank–IMF Africa Club for hosting the Africa Forum 2000. My presence here this morning is testimony to the great importance we attach to promoting private sector involvement and development in Africa. Indeed, it is now generally acknowledged that Africa needs the private sector to help it grow, prosper, and reduce poverty.

What is not widely discussed is that the private sector has needs as well. Indeed, as you well know, the private sector will only invest and develop in an environment where macroeconomic policies are sound and predictable; where labor is qualified; where the infrastructure is solid; where the regulatory framework is efficient and transparent; where good governance in corporate and public affairs exists; where there is a judicial system that is fair and accessible to all; and, perhaps above all, where the government has made a clear commitment to private sector development. The IMF is doing its part to bring these elements together through our policy advice, our technical assistance, and our financial support for reform and adjustment programs.

I want to assure you today that the IMF will stay fully engaged in Africa, and will continue to help African countries achieve faster and more sustained growth and reduce poverty. But you and I know that success will not come overnight and that, in spite of the gains achieved in growth rates and per capita incomes in the majority of African countries, many challenges remain. Africa needs higher investment and even higher growth if itPage 365 wants to be able to reduce poverty and improve the living conditions of its people. Africa must...