African nations are in desperate need of investment capital to jump-start economies that lack such basic infrastructure as roads, railways and electric power. This was the message from three African leaders in Philadelphia last month to attend the biennial summit of the Corporate Council on Africa. In a discussion moderated by James Harmon, former chairman of the Export-Import Bank, African officials offered a blueprint to help Africa compete in the global economy.

This pamphlet presents the results of an empirical analysis of the factors affecting economic growth in sub-Saharan Africa, using data for the period 1981-97 and a sample of 32 countries. The empirical work involved the estimation of a growth equation to identify the key determinants of per capita real GDP growth, including economic variables that reflect the influence of economic policy changes as well as other explanatory factors. On the basis of this analysis and a review of the evidence of economic recovery during 1995-97, using a much larger sample of countries, the pamphlet attempts to determine which policies appear to have been the most effective in terms of increasing economic growth and suggests the key elements of a policy framework that could promote sustainable economic growth and reduce poverty in sub-Saharan Africa.

"Winds of change are blowing through the continent," declared Smuts Ngonyama, chief strategic advisor to South African President Thabo Mbeki during a Wharton-sponsored forum on investing in Africa. While Ngonyama's upbeat sentiments were echoed by other speakers, these experts also noted persistent obstacles that still hamper significant levels of investment and development, including corruption and the lack of an adequate criminal justice system. But here as well, one speaker noted, the last few years have brought new efforts at reform and a greater sense that progress is indeed possible.

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