Future forecast
The commodities downturn may help force African countries to make structural changes towards diversification, but investors still face many hurdles and risks
Privatisation of Africa’s state-owned assets prompted by financial crises in several countries may be the trigger for a new wave of competitiveness and enterprise on the continent, starting this year. Speakers at the Deloitte Africa seminar on Africa’s outlook for 2017 highlighted the opportunities that may lie in wait for the continent if it frees itself from dependence on commodities, particularly oil. The recent cyclical fall in commodities prices, which showed early signs of turning last year, could force structural reform. Martyn Davies, MD of emerging markets & Africa at Deloitte Africa, said poor management of state-owned assets is largely responsible for the continent’s sluggish growth, notably in power and transport infrastructure. "Private capital is the greatest force for development," he said. In recent years the International Monetary Fund has intervened in 10-15 African countries a year. Its first step is to sell state-owned assets, which opens opportunities for more i...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.