Investing in Sub-Saharan Africa for Growth: Public or Private?

Abstract

This article examines the relationships between public, private, and economic growth in Sub-Saharan African countries from 1990 to 2019. The study reveals that private investment significantly contributes to long-term economic growth in the region. In contrast, the impact of public investment on long-term growth is not robust. These findings suggest that fostering economic growth in Sub-Saharan Africa requires a shift in policymaking from a public-sector to a private-sector growth approach. Prioritizing the private sector for growth and investment could be advantageous for most countries in the region, given their demographics and the imperative to create job opportunities.