Abstract
The chapter reviews recent empirical evidence on the importance of the services sector for Africa, with a particular focus on financial and infrastructure services. The chapter begins by reviewing the general literature on the importance of a competitive services sector for development, followed by evidence from developing countries and Africa in particular, including the correlations between growth in services and general growth. Subsequent to this, the chapter reviews literature on the importance of financial and infrastructure services, in particular for development.
The chapter then turns to giving an overview of the role of the services sector in the African economy, surveying trends and quantitative evidence and experiences from individual African countries. It concludes with a look at the importance of services for Africa’s development priorities, and areas for further research.
Ms Pesce completed her contribution to the chapter while working at the Economic Commission for Africa.
Mr Davis completed most of his contribution to the chapter while working for the African Trade Policy Centre at the Economic Commission for Africa.
Ms Tumuhimbise completed most of her contribution while working with the African Union Commission.
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Notes
- 1.
- 2.
Economic Commission for Africa calculations based on World Bank (2014c).
- 3.
Economic Commission for Africa analysis based on World Bank (2014c).
- 4.
The World Bank’s total natural resources rents indicator shows the sum of rents from all kinds of natural resources including oil, natural gas, coal, mineral and forest rents, as a share of gross domestic product. Rents are defined as the difference between the value of production at world prices and their total production costs.
- 5.
When including construction, real estate, public administration, finance and insurance, ICT and telecommunications, entertainment and music, professional and technical services and other business services.
- 6.
Economic Commission for Africa calculation based on World Bank (2013).
- 7.
Economic Commission for Africa calculation based on World Bank (2013).
- 8.
Economic Commission for Africa calculation based on World Bank (2013).
- 9.
Economic Commission for Africa calculation based on United Nations Conference on Trade and Development (2014), including non-government services not categorised.
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Acknowledgements
We would like to thank Stephen Karingi, Tama R. Lisinge and Marie T. Guiebo for advice that helped with the writing of this chapter. The chapter draws on work conducted in preparation for the UNCTAD Multi-Year Expert Meeting on Services in 2014, and on work conducted in support of Economic Report on Africa 2015.
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The views expressed in this chapter are the authors’ own and do not necessarily reflect those of their respective institutions.
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Pesce, O., Tumuhimbise, C., Davis, W., Sommer, L. (2019). The Importance of the Services Sector for Africa. In: Adewole, A., Struthers, J.J. (eds) Logistics and Global Value Chains in Africa. Palgrave Studies of Sustainable Business in Africa. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-77652-1_8
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