Limited capacity to pay, large infrastructure needs and a huge backlog in the construction of sanitation facilities make recourse to cross-subsidies and government-funded subsidies a necessity in Africa. * This Policy Insights introduces the African Economic Outlook 2007.

By analysing investment flows and examining the role of foreign direct investment in key industries, this book examines why Southern Africa has not become a magnet for FDI and what it needs to do to attract more investment.

Under the apartheid regime, South African business was marked by a high degree of concentration, both in terms of ownership and activities; indeed, it could be argued that this concentration was both created by and reinforced the exclusions linked to apartheid. In this paper, we identify the...