The practicality of attracting private investors: Exhibit 1- OHADA

As part of the things which must be done in Africa to support its growth, protecting private (and public investors) is primordial.

A recent paper by a very good friend of mine Jamal Haidar, economist at the Bank and on his way to Phd this summer: "Using objective measures of investor protections in 170 countries, I establish that the level of investor protection matters for cross-country differences in GDP growth: countries with stronger protections tend to grow faster than those with poor investor protections."

So to get to this finding, Jamal used the database of Doing Business, which you can find at www.doingbusiness.org

This is very interesting because the importance of identifying elements which are within the control of our cash poor states and do not necessarily require massive investments such as infrastructure, certain elements of health and education, are being overlooked in our development discussion.

Despite them having signed onto MIGA and ICSID's arbitration programs, many African nations remain below the radar screen of private investors...because none, included local ones, trust the judicial system. Passing laws such as OHADA helps a great deal (particularly toward the integration of our small economies) but the challenges of implementing these copied laws is simply ridiculous.

Having a supranational business regulation is great, but how do you expect a client operating in the DR Congo or Sao Tome e Principe to go to Abidjan for his hearing? There are no flights, the accommodation costs are unbearable of any mid-size firm operating in the region, and we all know the delaying tactics of our judicial systems.

This is to me a perfect example of a good law totally out of context!