Last month we debated the economic agenda of BCP and BDP. lets debate now UDC economic agenda and this is what they say in one of their pillars The new Government will establish at least two holding companies (it is always a problem when an entity is not put under pressure to compete with another) to manage a number of Funds inspired by Government: • Minerals and mineral processing Fund • Food and farming Fund • Diversified Fund • Infrastructure Fund • Services Fund The funds are to invest in several opportunities domestically. I personally believe in a private sector led economy with Government only participating as an investor in areas where Private sector is unable to participate alone. To me the funds have a potential to crowd the private sector and many increase the foothold of Government in domestic business, something which has been the basis of corruption and mismanagement in Africa. I will prefer nna scaling down Government equity where the private sector can participate alone but create incentive for p/sector to invest in some specific strategic sectors and Create a sovereign Wealth fund, specifically for regional investment opportunities in emerging economies such a Mozambique, South Sudan, DRC, with Government commitment to later disinvet in favour of citizens at commercial rate. Lessons from BDC ke gore Government is always a bad investor in Africa.
Posted on: Sat, 07 Jun 2014 14:42:28 +0000
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