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Macroeconomic “Shock-absorbers” for Africa
The need for further fiscal consolidation

Lessons Learned
The privatisation process in Africa is still far from complete and has led to mixed results. The successful cases of the Compagnie Ivorienne d’Electricité, Sonatel, and Société d’Energie et d’Eau du Gabon can not hide the dramatic failures.

Has Privatisation Benefited the Poor?
Privatisation is often considered detrimental to the poor because it entails the elimination of subsidies and therefore the increase in prices of products and services needed by the poor, such as water, electricity and public transportation.

A Limited Impact on Private Sector Development
Since the beginning of the process in 1990, the number of privatisations through public flotation has been only 4 per cent of total transactions. Moreover, the trend is downward, confirming the difficulty in African countries of building stock exchanges and capital markets, still often used by governments to raise loan finance rather than capital for industry.

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