Publication

This brief examines why the private sector has failed to thrive in much of sub-Saharan Africa. Drawing on a set of enterprise surveys, the authors identify inadequate infrastructure and burdensome regulations as the biggest obstacles to doing business. Further, they find that the private sector in many countries is dominated by ethnic minorities, which inhibits competition and lowers demand for a better business environment. Solutions, according to them, include investing in infrastructure, providing risk guarantees, and reforming regulations to lower the cost of doing business as well as increasing access to education for would-be entrepreneurs.