sector to compete and succeed but also for the state to
play directly in the economy in the form, for example, of
state enterprises operating in strategic sectors. He
concluded this section by emphasising that ―APRM
member countries should, therefore, be reviewed on how
they are promoting private sector as the engine of
growth.‖47
sector in any detail, but it deals with the potential
contribution of the private sector and the challenges it
faces. This is particularly pronounced in the Corporate
Governance (CG) thematic area, and specifically under
Objective 1 on Promoting an Enabling Environment and
Effective Regulatory Framework for Business
Organisations and Other Entities.
Africa‘s domestic private sector is indeed
underdeveloped. Partly motivated by ideological
considerations, harassment of the private sector has
been a widespread practice in much of Africa until
recently. This has in turn been a factor, among many,
behind Africa‘s mixed and sometimes disappointing
economic performance for a long time. Turning this
around, building a resilient private sector – particularly a
domestic private sector – is a critical part of the
continent‘s development agenda today. Encouragingly,
the Global Entrepreneurship Monitor has found that
African attitudes towards entrepreneurship are among
the most positive in the world.48
However, when African leaders established the APRM,
its primary task was ―to promote adherence to and
fulfilment of the commitments contained in this
Declaration‖, a reference to the 2002 NEPAD Declaration
on Democracy, Political, Economic and Corporate
Governance.49 Among the recognised instruments as a
standard of governance is the NEPAD Framework
Document from 2001, which deals with the private sector
specifically and extensively. To mention just a few
examples, the Framework Document acknowledges that
there is ―an urgent need to create conditions conducive
to private sector investments by both domestic and
foreign investors.‖50 Among the objectives of NEPAD in
this particular area include the need ―to ensure a sound
and conducive environment for private sector activities,
with particular emphasis on domestic entrepreneurs‖, ―to
promote foreign direct investment and trade, with special
emphasis on exports‖ and ―to develop micro-, small and
medium enterprises, including the informal sector.‖51
At the same time, we need to recognise that the structure
of Africa‘s national economies exhibits extreme diversity
in which a large number of informal sector, often micro,
businesses operating side by side with a small number of
formally registered small-to-medium indigenous
enterprises and, in many cases, an even smaller number
of large multi-national firms. Needless to say, while
undue government interference and harassment affects
them all, it is clearly the smaller ones that are most
vulnerable as they lack the resources to defend
themselves adequately. They also lack political access
that is often easily available to large enterprises. As a
result, interference with the private sector is likely to have
a disproportionate impact on the continent‘s smallest,
aspirant businesspeople, thereby retarding the growth of
a resilient business community. It is notable that this
bottleneck is related to Bottlenecks no. 4 (fragmented
markets, market access and expansion), no. 5 (lack of
industrialisation and low value addition), no. 8 (underdevelopment of agriculture), no. 9 (under-development of
the services sector), and no. 10 (non-responsive civil
service).
Beyond the NEPAD Framework Document, several other
documents touch on the issue of interference with the
private sector, albeit mostly obliquely, providing for some
broad preferences about appropriate state action. These
include:
What the APRM does about Interference
with the Private Sector
The APRM questionnaire does not delve much into the
issue of interference in or the harassment of the private
47
48
Discussion Paper, p. 2.
Kelly D, S Singer and M Herrington,
Global
Entrepreneurship
Monitor:
2015/16 Global Report, 2016, pp. 117118. The response of Africans to questions
about the desirability of entrepreneurship
as a career choice and the status accorded
to entrepreneurs revealed the most positive
attitudes of all continents.
49
50
51
21
AU, Convention on Preventing and Combating
Corruption (2003, Maputo, Mozambique)
Bank for International Settlements, Committee
on Payment and Settlement Systems, Core
Principles for Systemically Important Payment
Systems (January 2001, Basle, Switzerland)
IMF, Revised Code of Good Practices on
Fiscal Transparency (2001, Washington DC,
USA)
OAU, Memorandum of Understanding,
Conference on Security, Stability, Development
and Co-operation in Africa (2002, Durban,
South Africa)
OECD, Guidelines on Corporate Governance
of State-Owned Enterprises (2005, Paris,
France)
UN, Convention against Corruption (2003, New
York, USA)
See NEPAD Declaration on Democracy,
Political, Economic and Corporate
Governance
(AHG/235
(XXXVIII),
Annex I), para. 28.
NEPAD Framework Document, para. 145,
p. 37.
NEPAD Framework Document, para. 163,
p. 46.