Private Sector to Drive Africa's Growth, Bring Prosperity

Legislators from 40 African countries met to discuss private sector–led growth

Talks covered reforms to enable small businesses to flourish as growth engines

Delegates agreed efforts, measures to improve Africa's business climate

Opening the gathering of 120 parliamentarians from 40 African countries in Kigali, Rwanda, March 14, Kagame called for stronger intra-African cooperation and trade.

“There is no reason why we should be the world’s suppliers of cheap commodities and yet remain a vast market dependent on the outside world for most of our consumption goods,” Kagame told conference participants, who also included representatives of the private sector and civil society.

Addressing the role of parliamentarians, Kagame added that parliaments should develop “a modern and appropriate legal and institutional framework that meets the interest of business, employees and consumers in a fair, transparent and timely manner.”

The two-day conference was organized by the Parliamentary Network on the World Bank & International Monetary Fund, and hosted by the Rwandan government in its National Assembly complex. With the objective of bringing together parliamentarians, donors, private sector representatives, and government officials to discuss their respective roles in helping enable a conducive environment for private sector development, delegates also came together to learn from the Rwandan experience.

The landlocked country’s progress over the past decade includes measures to curb corruption, strengthen the rule of law, and reduce red tape. Sound economic policies ensured that Rwanda was one of the fastest-growing economies in the world, with economic growth averaging over 8 percent.

Decline in poverty

At the same time, poverty has declined as the share of the population living below the poverty line declined from 57 percent in 2005/06 to 45 percent in 2010/11. Economic growth and poverty reduction was accompanied by improvements in access to health services and, as a result, Rwanda will very likely meet and possibly even surpass targets set in the poverty-reducing Millennium Development Goals for child and maternal mortality by 2015.

To make further inroads in reducing poverty, the conference heard, Africa needs jobs, especially those created by a vibrant private sector; and parliamentarians are uniquely placed to ensure that the environment for business to flourish is adequate and conducive to investment.

IMF African Department Deputy...