Sub-Saharan nations explore ways to develop private sector

Delegates from eleven Anglophone sub-Saharan African countries are convening in Rwanda for a workshop to discuss challenges to private sector development. The three-day workshop, that opened on Tuesday in Bugesera District, runs under the theme, “Strengthening the Human Resources of Sub-Saharan African Countries for private sector development.” It was organised by United Nations Institute for Training and Research (UNITAR), in conjunction with the Arab Bank for Economic Development in Africa (BADEA). Participants are seeking ways to boost the role of the private sector in economic development. Participating countries include Rwanda, Uganda, South Sudan, Swaziland, Seychelles, Sierra Leone, Gambia, Ethiopia, Eritrea and Botswana. Babar Kamal, Manager of Public Finance and Trade Programme at UNITAR. Babar Kamal, manager of public finance and trade programme at UNITAR, said the seminar is part of a four year project launched in January. The project seeks to build capacities of government institutions mainly in economic planning, trade and investment to harness the capacity of private sector to cope with the national development challenges. “We are going to identify the gaps, examine the challenges, priorities and afterwards develop a training plan to help the nations meet their development priorities. Institutions have to work with private sector to get domestic financing for national development purposes and poverty reduction as highlighted in Sustainable Development Goals agenda,” Kamal said. Experts in economic and planning, trade and investment in the seminar in Bugesera district. He said many sub-Saharan African countries are poorly equipped to develop sound private sector policies, implement them effectively and monitor the results accurately due to inadequate human resource. Regulation flaw A recent African Development Bank report shows that, today, private sector generates about 70 per cent of Africa’s economic output, 70 per cent of its investment and 90 per cent of its employment, yet it is still composed of informal and small business. Participants observed that the private sector suffers from ineffective regulation, restrictive business environments, skills shortage, and difficulties in accessing financing. Leonard Rugwabiza, the chief economist at the Ministry of Finance and Economic Planning, said Rwanda understands the important role of private sector in development. “We are committed to creating an environment where business can operate free of trade barriers. This is not to say that there are no challenges in private sector development. Currently, our skills level is not where we want it to be,” he said. Experts in economic and planning, trade and investment in the seminar in Bugesera district. Isaac Rugamba , the external finance mobiliser at the Ministry of Finance and Economic Planning, said there is need for more efforts to facilitate private sector to meet national development goals since economic growth cannot be sustainably achieved without the role of private sector. Rwanda developed the Private Sector Development Strategy 2013/14-2017/18 to help address imbalances and unleash Rwandan entrepreneurship. The strategy is being delivered through seven programmes interventions, namely infrastructure for growth, investment promotion, entrepreneurship development, credit expansion, skills and innovation, better regulation and market access. The estimated total cost for these interventions is Rwf 307.9 billion from 2013/14 to 2017/18. editorial@newtimes.co.rw

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Sub-Saharan nations explore ways to develop private sector