The Public-Private Partnership Forum is Heading the Right Way

Last week’s meeting between government officials and the private sector has gone smoothly. There was no antagonism and no belligerency. The agenda was set and agreed by both parties. Issues of importance to the business community were openly discussed: problems related to VAT – what to do with those businesses not charging VAT, how to deal with contrabands, the impact of the National Bank’s regulations on private banks, taxes on factory inputs, notably, on how to support local pharmaceutical companies, government support to tour operators, etc. On these and other issues businessmen were free to ask questions or comment. Ministers and officials replied or explained the government’s position and views on issues raised and provided latest information on government policies. It was simply a constructive and collegial meeting.
Todate this was the most productive and friendly meeting chaired by Ato Girma Birru, the Minister of Trade and Industry, and Ato Berahane Mewa, the President of the Ethiopia Chamber. Both parties finally seem to recognize that good public-private sector cooperation is key to successful trade strategy and it will be ever more necessary in the future.
There is still a long way to go in making this initiative more fruitful. It pays for the government to have the private sector involved, right from the beginning, into the full realm of trade and investment policy formulation and discussion, to help government create symbiosis between the private and public sectors. This cooperation will be needed even more in the future because of the complexity of the global trade environment.
As for the business representatives they must have a clearly understood vision and mission, be reliable, have the capability to help business solve their operational and financing needs. They should be able to help develop competence, help identify exportable products, develop competitiveness and develop brand and country image.
They should clearly articulate that traditional sources of development finance – domestic savings, government aid, multilateral assistance and commercial bank lending - are no longer adequate. That sufficient investment has not come to the country due to three fundamental reasons: scale (small and inefficient markets), bureaucracy (difficult business facilitation practices) and corruption (lack of the rule of law).
Business leaders should work with government to attract greater investment flows by building a constructive private/public sector dialogue to define the public policy changes needed, aggressively pursue what can be termed a Transformation Agenda - accelerating the pace of integration, harmonization and the impartial application of the law throughout the regional governments.
Consensus building in the private public forum will lead to real change in the overall management of the country’s economic program. If this trend continues the results of the discussions today will be recognizable. A stronger, more dynamic private sector will develop. This can start with an invitation to listen, share, and build on those common points of agreement. It ends with a stronger, healthier environment for all.
Indeed, the mystery of public policy development needs some demystifying. Reaching consensus on public policy for business and investment is not only essential but also critical to the development objectives of the country. We throw our full support behind this development.