“There’s opportunity in Africa to develop technologies and services which can be exported to other continents,” Dirk Harbecke founder of African Development Corporation told CNBC Africa.
The continuous economic growth of Africa has been attracting the attention of international interests outside the continent.
According to the World Bank, the economic growth in sub-Saharan Africa is constant. A growth recording of 4.7 per cent in 2013 and there are predictions of a 5.2 per cent growth in 2014. Key contributions to the growth are the increase of investment in the consumer good market, natural resources and infrastructure.
“Governments must give stability to international investors, by working together with local entrepreneurs to attract international investors,” said Herbecke.
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Foreign direct investment (FDI), diversification and inclusive growth in Africa are the agendas for most African countries. The trend has been for governments to form private-public partnerships with international companies, but Herbecke believes the government plays a more important role.
“Some industries are in an early stage of development in respect to producing profit outputs. Government must support these industries in the beginning to attract international businesses to develop these businesses together which [can] lead to infrastructure development,” he explained.
Young African entrepreneurs are believed to be rising within the continent and to be producing innovative ideas which create jobs and contribute to local economies.
“African governments should support companies with subsidies in a wider space. This will help create strong local entrepreneurs. Such a system mustn’t work in one region but must transcend to [other areas],” he said.
The integration of FDI and local entrepreneurs can lead to job creation through new technologies, which can contribute to the economy.
“You [Africa] already have [innovative] services that a young group of entrepreneurs in financial services developed around mobile banking which are unique.”
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The continuous economic growth of African countries and the increase of young innovative entrepreneurs can create a new age for the continent.
“There’s opportunity for infrastructure to be built from scratch, opportunity to use international capital, government subsidies and the ideas of local entrepreneurs with the experience of the western world this can create a system unique to Africa.”
BY: THANDO MATUTU