A Business Vision for Africa

The report identifies political instability, crumbling infrastructure, a severe credit crunch, and the absence of the rule of law as the primary barriers to African economic development. It argues that while large-scale projects are often prioritized, the immediate economic payoff lies in the regular maintenance of existing transport and utility services and the reform of legal systems to protect property rights and enforce contracts. The document highlights a critical funding gap, noting that while Africa requires $64 billion in investments to meet growth targets, donors provide only about $14 billion annually. Corruption is identified as a pervasive corrosive force, with 52% of surveyed business organisations stating that bribes are necessary to open a business.

• Political stability is identified as the single most important priority for Africa's development, as economic growth is impossible while conflicts persist.
• There is a significant investment gap in Africa; the continent requires $64 billion to meet growth targets, but current annual aid from donors is only approximately $14 billion.
• Infrastructure failure is driven by a lack of basic maintenance rather than a lack of large-scale projects. Power outages are particularly severe, with 51% of surveyed business organisations reporting electricity failures at least once a week.
• The cost of transporting goods within Africa is disproportionately high due to neglected infrastructure; for example, moving goods from Abidjan to Addis Ababa is 3.5 times more expensive than moving them from Abidjan to Tokyo.
• Access to credit is a major inhibitor for small businesses, which make up 90% of the economy in some West African contexts, because banks are risk-averse and demand onerous collateral.
• The lack of a functioning rule of law and the inability to enforce contracts discourage foreign investment and exacerbate the credit crunch. In some African countries, resolving a payment dispute can take over 500 days and cost 60% of average annual per capita income.
• Corruption is a systemic barrier to business; 52% of business organisations surveyed by eAfrica reported that paying bribes is necessary to start a business.

APA

South African Institute of International Affairs (2008). A Business Vision for Africa. https://saiia.org.za/research/a-business-vision-for-africa/

Chicago

South African Institute of International Affairs. A Business Vision for Africa. 2008. https://saiia.org.za/research/a-business-vision-for-africa/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=A Business Vision for Africa |date=28 April 2008 |url=https://saiia.org.za/research/a-business-vision-for-africa/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2008business, author = {{South African Institute of International Affairs}}, title = {{A Business Vision for Africa}}, institution = {South African Institute of International Affairs}, year = {2008}, month = apr, url = {https://saiia.org.za/research/a-business-vision-for-africa/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }