Privatization in Africa: An appraisal

In spite of spirited efforts spanning over a decade, only a few African countries can boast of any appreciable success in the privatization and/or reform of state-owned enterprises (SOEs). This paper argues that previous studies have not paid adequate attention to identifying and addressing the factors that affect the outcome of privatization and/or SOE reforms in Africa. After highlighting some flaws in these studies, the paper focuses on the absence of the prerequisites for successful SOE reform. It then suggests policy issues that need to be addressed first, and, the role of interested parties, including the multilateral and bilateral financial institutions, in enhancing the success of SOE reform efforts in Africa. (C) 1998 Published by Elsevier Science Ltd. All rights reserved.