The French government organized a summit on the financing of African economies. The summit took place in Paris on May 18, 2021. The aim of the leaders attending the summit, in the presence of international organizations, was to act together, and find solutions to overcome the critical state of Africa at this time. , the state which is the consequence of the pandemic.
The private sector in fact improves the living conditions of populations because this sector generates more jobs, and subsequently contributes to the wealth of citizens. It is therefore necessary to strengthen the private sector. Indeed, to better understand the gravity of the situation, it is first important to know that 3 million jobs are created each year on the continent. This may seem like good news to you but not when you know that 10 to 12 million young people enter the labor market at the same time.
This therefore represents a challenge for the continent’s economy and causes a certain imbalance. To resolve this imbalance, the challenge for the African continent is precisely to create stable and remunerative jobs, which will also prevent the social and political tensions; this can degenerate into economic crises. In addition to the employment that is generated by private companies, the private sector also promotes innovation, public investment, and the pacification of post-conflict areas. Despite this, the attention and support given to this sector still remains limited and not up to the challenge.
On one hand, the target must be the pioneer companies investing in new markets, or high growth companies. The additional resources dedicated to this private sector must prevent the risk of uncertainties concerning the valuation of private companies. On the other hand, public development assistance for the benefit of private enterprises should not favor the concern for financial balance of specialized financial institutions, but rather seek the significant impact.
The solution for the economic crises is then widely linked to the development of the private sector, and especially of small enterprises and start-ups. The aid provided by the states, aimed at promoting the development of these private enterprises and subsequently the economy, implies breaking down cultural reservations and admitting that companies can be full players in this public policy.
Original article at : Entreprenante Afrique.