Udenrigsudvalget 2010-11 (1. samling)
URU Alm.del Bilag 180
Offentligt
14. juni 2011
Dear Members,Please find below the second question of PNoWB’s Parliamentary Questions Programme, which deals withthe private sector development in Sub-Saharan Africa. Creating an operational private sector forsustainable development not only requires important investments in infrastructure, but also a conductivebusiness environment. Parliamentarians create legislation related to the business regulation and have animportant role to play in creating an effective business environment.Therefore, we encourage you to ask the question in your Parliament and send the responses to PNoWB’sInternational Secretariat ([email protected]), which will share the results with the Network forcomments and possible follow-up activities.Please do not hesitate to contact us if you have any questions.Best wishes,Parliamentary Network on the World Bankc/o European Office of the World Bank66 avenue d'Iena 75116 Paris - FranceTel. +33 (0)1 40 69 30 55Fax +33 (0)1 40 69 31 64E-mail[email protected]Parliamentary Question on Private Sector Development in Sub-Saharan AfricaIt has long been said that in order to lessen their dependence on international aid, developing countriesneed to establish a favourable environment for private sector-led development. Indeed, a well-operatingprivate sector can be a catalyst for poverty reduction and raising people’s standards of living. A functioningprivate sector in emerging markets, however, requires a large amount of investment to first build a moderneconomy’s infrastructure.Looking at Sub-Saharan Africa, one of the poorest regions in the world, there has been substantial progressin attracting funds. A 2010 Report entitled ‘McKinsey on Africa: A continent on the move highlights theenormous potential of the continent and the improvements achieved so far. Sub-Saharan Africa has madesubstantial advances in its business environment to attract new investment. In the last Doing Business 2011rankings, there are 3 Sub-Saharan Africa countries among the 10 most-improved economies—Rwanda,Cape Verde, and Zambia.Many governments have made substantial efforts to introduce private sector reforms and suppress civilunrest, which in addition to recent increases in oil and commodity prices, has helped to increase Sub-Saharan Africa’s overall GDP. Nevertheless, it remains to be seen if the current economic growth will besustainable, once commodity prices stop rising. Many countries on the continent are struggling to attractcapital due to problems related to poor governance, weak institutions, and civil unrest, among otherreasons. In the World Bank Doing Business 2011 Report, under the ease of doing business rankings, 32 outof the 50 lowest-ranked countries are in Sub-Saharan Africa. Twenty-three of these countries also rankedpoorly in starting a new business and protecting investors. Clearly, there is still room for progress inestablishing vibrant and diversified domestic economies in Africa.
In this context, how is thisGovernment,in cooperation with International Financial Institutions, planning tosupport improvements in the business climate in Sub-Saharan Africa, including facilitating businessestablishment and operations? What investments have been allocated to strengthening local infrastructurein sectors such as transport and electricity? How is this government improving the climate for privateagricultural investment in the region? Finally, what steps will the government take to ensure an educatedand well trained labour force to sustain the development of the private sector?
