Synthesis documents

Regulatory reform for closing Africa's competitiveness gap, by Ioannis Kessides, UNU-WIDER

    Africa’s business environment and competitiveness are adversely affected by: (i) inadequate and poor regional infrastructure networks that raise cross-border transaction costs; and (ii) weak institutional capacity. Increased regionalization could potentially address both of these challenges. Regional integration of regulation, combined with regionalization of regulated firms, could assist the countries of Africa in overcoming national limits in technical expertise, enhance national capacity to make credible commitments to stable regulatory policy, facilitate the introduction of competition into historically monopolized markets, improve the efficiency of infrastructure industries by allowing them to grow without respecting economically artificial national boundaries, and ultimately increase infrastructure investment.