Political and social instability in countries such as Zimbabwe, the Democratic Republic of Congo and Chad have thwarted private-sector interest to invest, development experts said Oct. 23 at the European Development Days in Stockholm.
General Electric Co. and others will not "invest in countries where we cannot live," said Hans Enocson, the company's national executive for the Nordic region. In order for business to thrive in nations such as Zimbabwe, there must be "an environment that is conducive to the private sector," he stressed.
Alonzo Fulgham, acting administrator for the U.S. Agency for International Development, agreed that private investment is a crucial catalyst for economic stability, food security and job growth in Africa.
"A lot of work … needs to be done with the private sector and other foundations in order to move that process forward," Fulgham stressed, adding that there is a need for "creative solutions to hard problems when it comes to development" in Africa.
Fulgham cited Ghana as a prime example of an African nation that has created a positive environment for the private sector and, in turn, for growth. But while other African nations, such as Sierra Leone and Nigeria, have experienced slight economic growth in recent years, the continent has a long way to go to attract private investment and become a hub for industrial activity.
