Private investment for structural transformation and growth in Africa : where do small and medium-sized enterprises stand?

Abstract

This paper examines the relationship between private investment and structural transformation and growth in Africa with a special focus on small and medium-sized enterprises (SMEs). The results from the trend analysis show that private investment rates have increased modestly in recent times. At the same time per capita income growth has moved from negative to positive. The empirical growth and structural transformation models suggest private investment exerts a positive and statistically significance impact on per capita income growth, and the industry-to-agricultural output ratio.