Role of private sector in Africa's economic development

The second high-level meeting on global partnership for effective development cooperation is currently taking place in Nairobi, where global leaders are focusing on the inclusive and accelerated implementation of the Sustainable Development Goals (SDGs), specifically in the areas of financing and the involvement of youth and women. CNBC Africa's Jaskitong had an exclusive interview with Helen Clark, Administrator of the United Nations Development Program (UNDP) and former Prime Minister of New Zealand, to discuss the crucial role of the private sector in rolling out development programs in Sub-Saharan Africa. The interview shed light on the vibrant African private sector, emphasizing the necessity of private sector involvement in achieving the ambitious development agendas of the region. Clark noted that the private sector's confidence and investment are vital for the success of development programs, especially in establishing effective transport and communication links across borders. The global partnership conference in Nairobi is aimed at engaging the private sector in these discussions and highlighting the role of official development assistance in creating an enabling environment conducive to private sector investment. Clark elaborated on the challenges and importance of official development assistance (ODA) in the context of plateauing total ODA levels since the global financial crisis. She emphasized the need to explore various sources of financing, both public and private, domestic and international, to bolster development efforts. Domestic resource mobilization, particularly through effective tax systems, was underscored as a critical component in revenue generation for countries in Africa, with initiatives like 'tax inspectors without borders' supporting developing nations in enhancing their tax audit capacities. Furthermore, Clark addressed the unique challenges facing Africa as it transitions from the Millennium Development Goals (MDGs) to the Sustainable Development Goals (SDGs). She highlighted the importance of peace and stability in fostering development, citing the contrast between war-torn South Sudan and the relative stability of countries like Kenya. Investing in human capital, particularly the continent's large youth demographic, was identified as crucial for leveraging the demographic dividend and promoting sustainable development through education, skills training, and employment opportunities. Climate change emerged as another significant challenge for African countries, with many being highly vulnerable to its impacts. Clark stressed the importance of leveraging climate finance mechanisms such as carbon trading and the green climate fund to support climate-friendly and sustainable development initiatives across the continent. In terms of bridging the financing gap for Africa's SDGs, Clark highlighted the role of developed countries in meeting the 0.7% gross national income pledge for development assistance. Encouraging developed nations to invest in Africa and facilitate partnerships that drive sustainable development was deemed essential in creating a virtuous cycle of investment and capacity building. Finally, the discussion turned to the importance of inclusivity in development partnerships and the need for frameworks that accommodate the unique challenges faced by each country. Clark emphasized the significance of country-level partnerships that involve stakeholders from various sectors in shaping inclusive development visions. Building inclusive frameworks that appreciate the contributions of all stakeholders will be crucial in advancing sustainable development in Sub-Saharan Africa.