STATE AS ENTREPRENEUR
Dr Martyn Davies, CEO of Frontier Advisory, a Johannesburg-based research and investment advisory f irm, believes that African governments are not actively pursuing the potential long-term benefits that Kuban speaks of.
“I see very few examples where governments are comprehending how to create deeper value chains and how true value add – while not relying on resources – is actually created in an e c o n o my,” says Davies.
“For Africa to become t he ‘ next Asia’, leaders need to understand the drivers of Asia’s success,” he e x pl a i ns. “I n Asia, the state is the entrepreneur. In Africa, the state is far too often the predator.”
Davies singles out Ethiopia as probably the most progressive economy in seeking to build a low-end manufacturing sector.
“It is being very successful in attracting low-cost but high-employment creating industry, in particular from China,” he says.
IDC’s Kuban agrees that Ethopia is