OUAGADOUGOU — Dr. Eric Soubeiga, an investment fund manager from South Africa, emphasized the critical role of the private sector in the economic development of Africa, advocating for expansion and job creation to drive profitability.

According to Burkina Information Agency, Dr. Soubeiga articulated that enhancing the private equity industry would substantially improve access to capital for private companies, thereby fostering their growth. “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 stated.

Dr. Soubeiga pointed out that access to capital remains a significant hurdle for many business leaders across the continent. Traditional banking requirements, such as guarantees and mortgages, often pose challenges. In contrast, he advocated for private equity funds, which provide capital in a more flexible form, aiding in the better management of company cash flows.

Furthermore, Dr. Soubeiga highlighted the additional benefits of private equity, noting that such funds not only inject money but also offer substantial governance and technical support. “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 explained.

He also underscored the broader economic benefits of a thriving private sector, including increased tax revenues and reduced unemployment, which lessen the burden on state resources. “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 concluded.