Amid the decline in development aid for Africa, entrepreneurs and the private sector have been urged to work with governments to accelerate Africa’s economic development. The call was made on Monday, May 12 at the African CEO Forum 2025 in Abidjan, Côte d'Ivoire, during a panel themed “Can a New Deal between state and private sector deliver the continent a winning hand?” The CEOs reflected on how Africa can structure a ‘new deal’ between the state and the private sector to accelerate the continent’s development. ALSO READ: What decline in global development assistance means for Africa “Our conviction here at the CEO Forum is that the states should rely a lot on the private sector,” said Amir Ben Yahmed, CEO at Jeune Afrique Media Group. He emphasized that engaging the private sector does not mean raising taxes but encouraging collaboration in solving issues like food security and digital transformation, among others. He added that to successfully create collaborative solutions, governments have to be more efficient and ambitious in implementing the African Continental Free Trade Area(AfCFTA). Ethiopis Tafara, Regional Vice President for Africa International Finance Corporation(IFC), pointed out that there is no shortage of private capital or investors interested in countries, however, “the issue is finding projects that are bankable where you’ve got the calibration of the allocation of benefits and risks between the private sector and public sector.” He emphasized that governments need to understand what it is that they want to finance with public and private money and help in finding a balance in the allocation of benefits and risks, while taking into account the public interests. “Because of the shortage of official development money, we need to focus on placing the public money in initiatives and reforms that will mobilize the private capital. It is scarce, so it needs to be carefully applied to open up the front gates for more private capital,” he noted. The panelists echoed that raising capital is also an issue for local entrepreneurs. However, with international organisations stepping out of the continent, Yahmed noted that it is the right time for local entrepreneurs to step up and capture opportunities. Currency of use in trade As the continent advances in digital technology, it was stressed that the means of payment, like mobile payments, are key enablers to facilitate traceability, transparency, and economic empowerment. However, the CEOs pointed out the issue of what is the best currency to trade in in Africa, given the ongoing US tariffs. “I am cognisant of the fact that in trying to develop the private sector across the continent, we are really working with local firms, many of whom don’t generate revenues in hard currency. So I think for us it is increasingly important to find ways to finance them using local currency,” Tafara said.
