The services sector critical source of income and employment in Africa. As the most dominant sector in many African economies, it has become a dynamic driver of growth in the continent in recent years.
This dynamism, however, has not translated into a structural transformation of the continent.
Africa’s services provision remains suboptimal and is delivered at a high cost. Various regulatory and policy shortcomings prevail, which explain these inefficiencies and impede Africa’s capacity to fully capitalize on the potential of its services sector.
If the continent is to fully realize the benefits of development, services must play an enhanced role in the growth process.
Regulation of and policies for infrastructure services need to better target existing market failures and address structural impediments to improve performance in the sector and unleash the potential of Africa’s services economy.