PR TIMES AFRICA PRTimesAfrica (March 2016) | Page 62

lic-private sector consultations, considering
that the private sector has so far played a lim-
ited role in implementing Africa’s development.
“Engaging with the private sector genuinely
increases investments internally and also be-
comes an effective means of attracting exter-
nal investment. There is no rapport between
governments and the private sector. There is a
them-and-us syndrome,” notes Mr. Binha.
The ECA estimates the private equity market
in Africa to be worth about $30 billion. In 2011
alone, private equity firms raised $1.5 billion for
business in Africa.
Reducing the cost of remittances
While remittances have increased, averaging
$21.8 billion over the past decade, with coun-
tries such as Nigeria and Senegal receiving
about 10% of their GDP in remittances, experts
say the cost of sending remittances to Africa
has remained the highest in the world, with the
cost of transfers within Africa even higher. For
remittances to have an impact, they must be
made cheaper and used effectively to spur de-
velopment.
Sometimes tough anti–money laundering laws
and counter-surveillance regulations meant
to combat financial terrorism can stifle remit-
tances, thereby negating the continent’s prog-
ress. This recently happened when US banks
plugged remittance services to Somalia.
Curtailing IFFs remains a major challenge that
Africa must vigorously undertake. Such out-
flows from Africa may have been as high as
$854 billion between 1970 and 2008, which
amounts to an annual average of close to $22
billion in lost finances—more than half of it
coming from the extractive industries sector.
The domestic resource mobilization effort will
receive a signif