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Privatization in Africa

What has happened? What is to be done? - Working Paper #92

John Nellis

Paper  563kb pdf

Sub-Saharan African states urgently need expanded and more dynamic private sectors, more efficient and effective infrastructure/utility provision, and increased investment from both domestic and foreign sources. Privatization is one way to address these problems. But African states have generally been slow and reluctant privatizers; a good percentage of industrial/manufacturing and most infrastructure still remains in state hands. Given prevailing public hostility towards privatization, and widespread institutional weaknesses, such caution is defensible, but nonetheless very costly. The long-run and difficult solution is the creation and reinforcement of the institutions that underpin and guide proper market operations. In the interim, African governments and donors have little choice but to continue to experiment with the use of externally supplied substitutes for gaps in local regulatory and legal systems.

About the Author

John Nellis
Senior Fellow
Center for Global Development

Publication Information

Type Working Paper
Program Privatization
Posted 10/01/05
Download 563kb pdf
# Pages 44