Working Paper 52 - Poverty Reduction in sub - Saharan Africa: Is There a Role for the Private Sector?

Most African countries are faced with serious and worsening poverty. Given themagnitude of the problem, it is unrealistic for Governments in the region to be leftalone to tackle this daunting task in light of the financial and institutional crises thatis facing most of the countries in Sub-Saharan Africa. Therefore, to achievesustainable development there is need for a holistic approaches to dealing with theconcerns of the poor in the region. There is a range of civil society organisationswhose participation is essential to address appropriately the challenge of povertyreduction. Private sector firms - large and small and both domestic and foreign -non-governmental organisations, community based organizations, have a role toplay in promoting people’s welfare which was traditionally expected from the state.This is particularly warranted as African governments are confronted with shrinkingresources. However, the state will continue to play an essential role in a number ofareas including provision of basic social services, ensuring the appropriate policyenvironment, stimulating the development of entrepreneurship or promoting orundertaking, as necessary, some functions which can not, for reasons of scale orexternality, be adequately initiated by the private sector.