africa is open for business

There has been a lot of positive talk about business in Africa lately.

Mckinsey came out with its big report in June 2010. That was followed by the release of Steve Radelet’s Emerging Africa, a story of the 17 African countries that have the political and economic fundamentals right. Most recently the Economist has highlighted the fact that among the top ten fastest growing economies in the world over the next decade, seven will be African.

Keeping in the same vein the innovative African Leadership Academy has organized a conference at the Stanford Institute for Economic Policy Research (SIEPR).

The keynote address this morning was by Jeff Sachs via skype. Sachs noted that microfinance was oversold to the global south and that the current backlash is sort of warranted, but that it is overblown.

He also pointed out, rightfully, that pro-poor growth as currently understood “cannot refashion the economy.”

I oftentimes disagree with Sachs’ proposals for ending poverty, but on this point (and as I have written before) he is right. The eradication of poverty in Africa is contingent on sustainable job creation by SMEs and big business.

Other big names at the conference include the Bank’s Devarajan, Mckinsey’s Leke, Africa.com’s Clarke, Chris Udry of Yale, Paul Romer of Stanford, among others.

The conference website is here.

More on this later tonight (west coast time).