Africa has opportunities
to benefit from globalization, in manufacturing but even more in agriculture. In a competitive
world market, however, success depends on strict quality control and timeliness of delivery.
Private firms, including foreign investors, can supply capital, entrepreneurship and technology,
but require an enabling environment and public goods—contract enforcement, technical
assistance, and adequate infrastructure. When the government fails to provide public goods and
harasses formal-sector firms, domestic enterprises will shut down or become informal, and
foreign investors will look elsewhere. The workforce pays the price in the form of fewer
employment opportunities and lower incomes. Many African countries have made considerable
progress in restoring macroeconomic stability and improving the business environment, but
further efforts are needed to attain global competitiveness in labour-intensive industries to spur
sustained employment growth and rising earnings.
Africa has opportunitiesto benefit from globalization, in manufacturing but even more in agriculture. In a competitiveworld market, however, success depends on strict quality control and timeliness of delivery.Private firms, including foreign investors, can supply capital, entrepreneurship and technology,but require an enabling environment and public goods—contract enforcement, technicalassistance, and adequate infrastructure. When the government fails to provide public goods andharasses formal-sector firms, domestic enterprises will shut down or become informal, andforeign investors will look elsewhere. The workforce pays the price in the form of feweremployment opportunities and lower incomes. Many African countries have made considerableprogress in restoring macroeconomic stability and improving the business environment, butfurther efforts are needed to attain global competitiveness in labour-intensive industries to spursustained employment growth and rising earnings.
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