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The privatisation process in Africa is still far from complete and has led to mixed results. The successful cases of the Compagnie Ivorienne d’Electricité, Sonatel, and Société

d’Energie et d’Eau du Gabon can not hide the dramatic failures. Most privatisations have been imposed from the Bretton Woods Institutions – sometimes without taking into consideration the country’s specificities – and suffered therefore from a lack of government commitment, which, in turn, led to significant opposition by the population and difficult implementation.

Nonetheless, the lessons learned from past privatisations allow the identification of elements that could contribute to future success.

• Privatisation should be integrated into other public policies, in particular to the country’s Poverty Reduction Strategy Paper.

• Privatisation processes should follow proper sequencing, involving the setting up of well enforced regulation prior to the divesting phase.

• Privatisation processes should be adapted to the specific needs of each sector.

• Privatisation reform should involve a constant dialogue between the different actors engaged (citizens, state, private sector, and trade unions) in the process, in order to increase the awareness of the population, broaden local participation, built support and foster the state’s accountability.

by Lucia Wegner Privatisation: A Challenge for Sub-Saharan Africa This Policy Insights is derived from the special theme section of the 2003 African Economic Outlook and on a 2004 OECD Development Centre Study To learn more about this author, visit OECD Development Centre's Website.

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OECD Development Centre
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Created in 1962 by the Organisation for Economic Co-operation and Development (OECD) in Paris, the Development Centre is an interface between OECD Member countries and the emerging and developing economies. The Development Centre occupies a unique place within the OECD and in the international community. It is a forum where countries come to share their experience of economic and social development policies. The Centre contributes expert analysis to the development policy debate. The objective is to help decision makers find policy solutions to stimulate growth and improve living conditions in developing and emerging economies.
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