Ms. Swazi Tshabalala, a leading candidate for the presidency of the African Development Bank (AfDB), has made a strong case for African governments to undertake critical reforms that will make the continent more attractive to private sector investment.
Speaking on Starr Chart with Bola Ray, Tshabalala emphasized the urgent need for African countries to create environments that encourage private sector participation, especially in infrastructure development and essential services.
“In this current geopolitical environment, if we are to engage the private sector to bring their resources and skills to help us build the basic infrastructure that Africa needs to be a productive continent, countries are going to have to reform,” she stated.
Tshabalala noted that sustainable development is not possible without the private sector, asserting that infrastructure should serve as a foundation to spur economic activity and entrepreneurship. “You build infrastructure because you are trying to encourage private sector economic activity. Otherwise, why are you building it?”
She praised the ingenuity of African entrepreneurs, saying they do not require hand-holding but need certainty, infrastructure, and competitive conditions to succeed.
“If you have a business in Africa but you are struggling with electricity, and you are competing with someone in a region where power is stable, then you’re already at a disadvantage.”
Tshabalala also pointed to the vast potential of institutional investors and private capital to support Africa’s development provided there’s a conducive investment climate. “They will not give you money just to approve a project and then sit for five years doing nothing. That they will not allow,” she warned.
Addressing the continent’s post-pandemic fiscal challenges, she proposed that governments increasingly embrace public-private partnerships (PPPs) in sectors like health, education, sanitation, and agriculture. “We either wait for them to become cash-flush again, or we mobilize the private sector now,” she said.
