Focus shifts to poverty reduction – and adding value is the buzz phrase

It wasn’t only volumes that were affected by the global economic downturn – the rules of doing business in Africa also changed. This is according to Chris Edeh, CEO of Pax South Africa, an investment holding company with focus on information technology, real estate, mining and the agricultural sectors. An exporter of ICT infrastructure, machinery as well as health and safety equipment into sub Saharan Africa, Edeh says as African countries were hit by the crisis, leaders stood up to the challenge. “Governments are addressing the continent’s challenges and opportunities by promoting growth, job creation and poverty reduction as well as the dependency on commodities.” It has become clear that the private sector can add value. “Inclusive growth that generates decent work and income is the best way to reduce poverty in Africa. Focus is on increasing competitiveness of private enterprise.” Edeh says they see a lot of progress in Africa with reforms hitting a record level this year. “Reforms were recorded in 131 countries, 20% more than the year before. For the first time a sub-Saharan country, Rwanda, was the world’s top reformer of business regulation, making it easier to start businesses, register property, protect investors, trade across borders and access credit.” This is all despite the projected decline in growth. “The potential consequences of the global downturn for Africa’s development should not be underestimated,” says Edeh. “However, the future also presents real opportunities for Africa.” It is predicted over 80% of future global economic growth will depend on emerging markets. “African countries can become major beneficiaries of this trend if the continent pursues the right policies for private sector-led growth and value added exports,” says Edeh. “By 2025 one in every four young people worldwide will be from sub- Saharan Africa. This gives the region a significant opportunity. If capital is available and if the skills needed to compete in the global economy are nurtured, the continent’s youth will constitute a major comparative advantage and be a force for positive change in Africa.”