_uacct = "UA-2085720-1"; urchinTracker(); Fostering Broadly Shared Prosperity
TrustAfrica supports initiatives to foster African enterprise and extend the benefits of economic growth to all members of society. Rationale  The lives and livelihoods of Africa’s people are shaped to a great extent by the vitality of its economy—how easily workers can find gainful and fulfilling employment, how readily businesses can clear bureaucratic hurdles and find capital to grow, and how broadly prosperity is shared. Reforms at the national level could go a long way in expanding these opportunities. Greater public investment in education and training, for example, could cultivate a more productive and innovative workforce, while clearer regulations and more coherent legal frameworks could help small and medium-sized enterprises get off the ground. Stronger regional institutions and policies that recognize the significance of informal and cross-border trade could also spur economic development in ways that alleviate poverty.
Africa’s relationship to the global economy also presents acute challenges, as evidenced by its lack of influence within the World Trade Organization. Although the continent is home to 13 percent of the world's population, it commands less than two percent of world trade and less than one percent of global investment. These disparities reflect not only the small scale of many of our national economies, but also severe inequalities and exploitative relationships embedded in the global economy. Fostering African enterprise and entrepreneurship can help the continent overcome its heavy reliance on businesses rooted overseas. The mounting consensus that the continent needs “trade, not aid” points the way forward. Already many African nations are growing their economies at a rapid pace, and investors are beginning to see the promise their stock exchanges and capital markets hold. While creating new wealth is critical, it must be done sustainably and equitably—in ways that minimize environmental impacts and extend the benefits of development to all members of society. Realizing the Millennium Development Goals and achieving broadly shared prosperity will also require governments to prioritize such areas as education and health, as recommended by civil society initiatives like the “15% Now!” Campaign.
Strategies TrustAfrica supports research, analysis, and advocacy to: - Identify and mitigate barriers to public investments and policies that produce sustainable and equitable benefits.
- Document and disseminate best practices in investment promotion and private-sector development across Africa.
- Harmonize national policies to stimulate regional trade and investment.
Activities One of our core initiatives in this area aims to cultivate a more favorable investment climate and a more fertile business environment in Africa through research and advocacy. In partnership with the International Development Research Center (IDRC) and the Foundation for Sustainable Enterprise and Development (FSED), we award competitive research grants, conduct training workshops, and forge partnerships between business schools and private-sector organizations to contribute to a sustainable and equitable investment climate and business environment in Africa. The researchers we support through this initiative, known as the Investment Climate and Business Environment (ICBE) Research Fund, are analyzing such issues as regulation and reform in procurement; investment and corporate governance; supply chains and the informal sector; public and private sector partnerships; capital markets and foreign direct investments; energy and poverty in rural areas; and the creation and growth of youth and women enterprises. We also provide financial support and technical assistance to civil society organizations that advocate for equitable development policies, economic reforms that improve human security, and more favorable terms for international and global trade. One of our grantees is conducting research and advocacy on the East African Community, focusing on the political economy of federation. Another is working to build the capacity of civil society groups to engage the media on issues of African integration related to the debate on the proposed Economic Partnership Agreements with the European Union. TrustAfrica has also supported a network of six leading institutions in South Africa, Ghana, Kenya, Ethiopia, and Egypt that are conducting the research and advocacy needed to align economic policies across regions—with an emphasis on fair trade, regional investment, and the free movement of private citizens. This network enables countries large and small (like Senegal and Gambia, or South Africa and Lesotho) to align their cross-border trade and investment and judiciously coordinate their responses to global trade and investment trends. In an effort to help African countries to stem the health and social costs of HIV/AIDS and rebuild their economies, we are mounting an initiative to strengthen African engagement with the global HIV/AIDS establishment and thereby foster a continental response to the epidemic. This work recognizes that while Africa is the world’s hardest-hit region, it carries the least influence in the development and implementation of policies and decisions to control HIV/AIDS.
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