A key for sustained African development is improved regulations

There are several factors that are necessary for growth in Africa. Key among these plans for growth is the need to improve regulatory regimes. Improving these plans require an adequate assessment of the diverse domestic and regional conditions that impact sustained growth in the continent.

There must be conditions to grow investment plans in Africa for these energy commitments to grow. There must be effective regulations to have periods of sustained growth in Africa. A reliable government makes sure that effective procedures are established to ensure the productive implementation of project plans and funds. A transparent government creates guidelines to discover rogue actors and policies to limit the damage of bad behavior.

Fortunately, Africa’s reputation for incorporating anti-corruption practices in program development is improving gradually. The Ibrahim Index for 2016 indicated that 70 percent of Africans say that they live in countries with improved governance, resulting from enhanced regulatory reform.

Improved regulations are anticipated to enhance the competitive advantage and negotiating power of African societies. They are expected to provide better support for domestic capacities as well as assurances for foreign investments. These improved regulations are responsible for the quality of law, namely, just judicial systems, reliable police structures, and efficient policymakers.

These agents of the rule of law, are intended to promote equitable interaction in society. More importantly, fairness in business practices at the local and national levels. The key consideration here is creating an environment for trade that accommodates global demands. Proper management of investment funds does just that, as it encourages future participation in emerging economies by improving investor confidence in Africa.

There is a correlation between the prevention of corrupt practices and the success of investment plans in Africa. Countries that have shown improved transparency ratings have been able to improve their chances at attracting investments for development.

These improvements in regulatory practices make Uganda, Kenya, Senegal, Mauritania and Benin exciting destinations for investment as their economies are more equipped to fulfill global demands. Improved regulations impact transparency in property rights and the proper management of development funds. It also provides a diverse source of additional export potential for African economies.

Advancements in technology and information sharing in Africa provides support for those countries not known for exporting core commodities. Landlocked economies with limited natural resources can impact global services demands, by focusing on their capacity to be a destination for technology-related investment plans. This is evident in Kenya and Uganda’s growing reputation as a hub for innovative technologies. But for this progress to remain, political stability and transparency must persist.

The link between political instability and underdevelopment are damming.

The top five corrupt African countries according to Transparency International are:

(1)  Somalia;

(2)  South Sudan;

(3)  Guinea-Bissau;

(4)  Eritrea; and

(5)  Angola.

This information is relevant to the development and improvement of these economies, because corruption is likely to exist where there are weak institutions and economic woes that are worsened by violent unrest.

Sources: Mo Ibrahim Foundation, Transparency International,