PwC portrays Cote d'Ivoire as golden standard for governance reforms

New analysis from global professional services firm PwC has indicated that African countries have the potential to boost their overall output by as much as $23 billion, provided that they implement comprehensive reforms in their governance mechanisms. The firm paints Cote d’Ivoire as the golden standard for reforms. 

Several economists are currently examining individual African economies as well as the continental ecosystem as a whole to devise strategies with which the region can accelerate towards its economic potential. A number of promising economic indicators are prompting experts to position the continent as a future economic centre.

However, the region is currently operating far below its potential, due to a variety of factors. Some factors – such as the highly complex taxation environment in Nigeria – are country-specific problems that require individually tailored solutions. Others, however, apply across the continent.

Big Four accounting and advisory firm PwC has revealed how most countries on the continent could benefit from reforms to their governance strategies. Cote d’Ivoire has been implementing a number of changes to its governance structure since 2013, which have been highly successful.

According to PwC analysts, if this model is followed, African countries could receive an economic boost of $23 billion, although the distribution of these gains is likely to be far from equitable. The firm expects countries with a higher GDP to receive a bigger portion of the benefits.

Chief Economist at PwC South Africa Lullu Krugel explains, “Côte d’Ivoire has become one of the fastest-growing economies in the world on the back of positive reforms following the country’s 2011 civil war. The key factor in this post-crisis reform strategy, which included two comprehensive five-year national development plans, was the implementation of monitoring and accountability processes to ensure success. Good quality governance was decided on as the best course of action, with strong political will backing reform processes.”

“This continent-wide economic analysis shows the economic benefits that could stem from improved governance. $23bn in additional economic output would create jobs and income opportunities for many Africans, helping stem the brain drain from the continent, increasing government revenues, and expanding consume markets that have proven so attractive to international investors.”