UNECA ECONOMIC REPORT ON AFRICA 2020: INNOVATIVE FINANCE FOR PRIVATE SECTOR DEVELOPMENT IN AFRICA
The Economic Commission for Africa (ECA) on Tuesday launched its flagship Economic Report on Africa, titled: “Innovative Finance for Private Sector Development in Africa”, which looks at innovate financing as a way of providing solutions to the challenges of private sector financing, hence enabling Africa’s private sector to thrive and drive the continent’s economic growth and recovery; and, importantly, to increase the private sector’s resilience to the effects of the global coronavirus pandemic.
Prepared by the institution’s Private Sector Development and Finance Division and under the leadership of the Executive Secretary, Ms. Vera Songwe, the Report was presented during a virtual launch attended by some of Africa’s most eminent minds in the business and finance sectors, government officials, civil society, academia, representatives of the public and private sectors, as well as development partners.
In remarks made at the launch, Ms. Songwe expressed her hope that the analysis in the ERA would allow stakeholders, particularly during, and in the post-COVID-19 pandemic, to look at how financing and innovative tools for infrastructure, agriculture and technology, are designed as the Continent tries to build forward out of the COVID-19 pandemic.
The Report examines the innovative financial instruments, practices and policies required to enable African countries to make a step-change in growing the gamut of businesses, including start-ups, micro and small enterprises, social enterprises, professional businesses, exchange-listed corporates, and public-private companies, that will drive inclusive economic growth, create jobs and pathways to better livelihoods for African people. It’s key recommendations include regulating the banking and financial services sector; creating financial stability through effective policies; amending and updating financial sector legislation and regulatory policies; and promoting innovative private sector financing.
The report also calls on African nations to embrace the continent’s Digital Transformation Strategy and the African Continental Free Trade Area (AfCFTA) to streamline policies and regulation.