An improved investment climate in Africa is a top priority for developing the private sector. The single, most substantial barrier to foreign and domestic investment in developing countries is the business operating environment. Under the investment climate team, a facility managed by IFC PEP Africa, the World Bank Group provides assistance and advice to African governments on how to improve their business and investment climates.
Most investment climate programs begin with a request from a high-level government entity for the World Bank Group to conduct a diagnosis and propose solutions. The emphasis of proposed solutions is placed on leverage points that will result in rapid and effective change, provided the client government has the capacity and willingness to reform. IFC and the World Bank contribute some of the funding required to implement the solutions, while the balance is usually funded by governments and donors.
The World Bank Group's advisory work is structured into two areas of core expertise
- Regulatory Simplification includes advice and implementation support on business registration and licensing, tax, trade logistics, and secured transactions. In some countries, the investment climate team also works on property registration, special economic zones and labor law.
- Investment Generation focuses on the creation of an effective legal, policy and institutional framework for investment, coupled with assistance to help market the improving business environment. The team also supports investment generation at the industry level as many important investment climate issues are industry-specific (e.g. product standard certification issues; import policy distortions; environmental and social standards; constraints to competition). In Africa, the team also focuses on tourism, agribusiness and mining.
Implementing Solutions
As a result of the investment climate team's work, the ranking of countries in Africa in Ithe World Bank Group's annual
Doing Business study has been improving in recent years. From among the worst performing regions in terms of reform processes and willingness to reform, Sub-Saharan Africa as a whole rose to the third best-performing continent in the 2009 survey. According to Doing Business 2009, Africa had a record year for regulatory reforms that make it easier to do business, with 28 countries completing 58 reforms. Three of the world's top 10 reformers are African countries - Senegal, Burkina Faso, and Botswana.
For further information contact:
David Bridgman
Investment Climate Team
IFC PEP Africa
Email:
dbrigman@worldbank.org 
