STATE AS EN­TRE­PRE­NEUR

Finweek English Edition - - INSIGHT: INTERNATIONAL -

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

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