ON AFRICA: 4 The Impact of Privatization on Economic Growth and Income Inequality in Sub-Saharan Africa

The study examines the impact of privatization on economic growth and income inequality in Sub-Saharan Africa (SSA) between 1990 and 2001. The main findings of the study are: privatization did not contribute to growth but helped to reduce income inequality; inflation contributed negatively to both economic growth and income equalization; and governance infrastructure enhanced growth between 1990 and 2001. Though, the study is one of the first to analyze the impact of privatization in SSA, the results reported leads us to reject the hypothesis that privatization boosted economic growth in SSA between 1990 and 2001. The study’s findings suggest that the necessary market supporting institutions must be in place for privatization to have an appreciable impact on the economy