corrupt or simply inefficient implementation. Some very significant hindrances have their origins in governance. The first Kenya CRR provides that factors negatively affecting the investment climate in the country included ―the impact of poor public service delivery, corruption and money laundering, capacity and skills shortages, growing insecurity and economic factors such as decaying infrastructure, high taxes and non-availability of capital.‖55 Together, these standards envision economies in which: (i) the private sector both respects and is protected by the rule of law, operates ethically, and enjoys a cooperative relationship with the state; (ii) Government operates transparently and with integrity; (iii) where state owned companies exist, they would operate without undue advantage vis-à-vis the private sector, and (iv) the private sector is recognised as the key economic driver. While the more extreme forms of harassment (in the mould of Amin‘s actions) are uncommon today, many African businesses must contend with lower-level, localised and often unsystematic, but debilitating, harassment. This cannot be separated from general weaknesses in governance – such as an inefficient and ineffective civil service. Businesses often need to seek official permissions, licences and so on, and the inability of a bureaucracy to act timeously on this presents a string of difficulties – highlighted by several CRRs.56 This in turn opens up opportunities for public officials to extort money and favours from businesspeople. Thus, crossborder trade, frequently carried out by small-scale informal sector traders, is subject to harassment and extortion by customs officials.57 Tax compliance may be complicated by the complex nature of legislation in this area, by lack of proper understanding of the tax system on the part of tax enforcement officials, and by often aggressive and punitive mindset on the part of agencies.58 To cite the NEPAD Declaration on Democracy, Political, Economic and Corporate Governance again: Globalisation and liberalisation does not mean that there should be no role for government in socio-economic development. It only means a different type of government. We, therefore, undertake to foster new partnerships between government and the private sector; a new division of labour in which the private sector will be the veritable engine of economic growth, while governments concentrate on the development of infrastructure and the creation of a macroeconomic environment. This includes expanding and enhancing the quality of human resources and providing the appropriate institutional framework to guide the formulation and execution of economic policy. This finds expression in Agenda 2063:52 The African continent will graduate from being characterized by predominantly low income market-based, country economies to higherend middle income to high-income dynamic, market-based groups of countries. Improved incomes and jobs creation, especially through formal private sector growth will translate into the elimination of poverty. This will be coupled with reduction in income disparities between rural and urban areas, men and women, leading to more inclusive and cohesive societies. Corruption represents a particular challenge. It makes direct demands on business‘ resources and introduces an element of unpredictability to their operations. It is also a very direct expression of the harassment to which 55 56 57 Nevertheless, as Agenda 2063 recognises, the private sector in Africa is at an ‗infant‘ stage.53 Implied in this is that governments need to act to nurture the development of the private sector rather than to hobble it. The APRM record so far on Interference with the Private Sector While some CRRs note its recent growth,54 they put a lot of emphasis on the challenges facing the private sector. The challenges arise from a number of sources. Sometimes official policy or legislation may be burdensome; other times the problem may lie with 52 53 54 58 Agenda 2063, p. 4, Agenda 2063, p. 46. For example, Tanzania CRR, p. 115. 22 Kenya CRR, p. 164. Uganda CRR, pp. 170, 182; Ghana CRR, p. 85; Algeria CRR, p. 95; Benin CRR, p. 191-192; Kenya CRR, p. 166. Brenton P, et al Risky Business: Poor Women Cross-Border Traders in the Great Lakes Region of Africa (Africa Trade Policy Notes, no. 11, January 2011); Mwaniki J, „The Impact of Informal Cross-Border Trade on Regional Integration in SADC and Implications for Wealth Creation‟, SARPN (Southern African Regional Poverty Network, undated) http://www.sarpn.org/documents/d000100 2/CFA-Mwaniki_CORN.pdf. PWC, Africa: managing risks, maximising reward (2nd ed. Africa Tax Survey, September 2013); SBP, Priming the soil: small business in South Africa, Headline report of SBP‟s SME Growth Index (November 2011); SBP, Growth and competitiveness for small business in South Africa, Headline report of SBP‟s SME Growth Index (February 2014).