Development of African economies: The private sector must grow and create jobs, says an investment fund manager

The private sector must grow and create jobs, says an investment fund managerOuagadougou July 10 2024 (AIB)-In an interview published this Wednesday in Sidwaya, the investment fund manager in South Africa Dr Eric Soubeiga believes that to develop African economies, ''the private sector must be able to grow, create jobs , while being profitable''.To allow private companies to grow and have access to capital, Mr. Soubeiga recommended developing the private equity industry.''The link between investment funds and the development of Africa is very direct. If on the continent we managed to develop the private equity industry, we would give more opportunities to private companies to have access to capital,'' he said.The South African investment fund manager noted that ''one of the biggest challenges business leaders face is access to capital to finance their growth plans''.He said that "with the banks, there are all kinds of guarantees and mortgages that the company must give."While in his opinion, ''a p rivate equity fund provides capital in the form of equity, which is much more flexible for the company's cash flow.Additionally, he went on to note that ''the private equity fund doesn't just bring in money.''''The fund will also play a fairly proactive role on the board of directors, providing the necessary technical support over a period of 5 to 7 years, which will allow the company to increase in size' ', he informed.''And even the State gains, in terms of tax revenue, in particular taxes on profits, IUTS. Better still, the State has fewer unemployed and unemployed people in its care,'' he continued.Source: Burkina Information Agency