There is an inextricable link between the success of the private sector in any nation and the existence of a free of conflict environment. However, many actors in the private sector in Africa have failed to acknowledge this.
Operating in a conflict prone region creates an unpredictable environment, which is not sustainable for businesses in the long run. Peace and stability are generally associated with good investment decisions and market opportunities for businesses.
There is a growing trend worldwide where the private sector’s role in contributions to economic development, infrastructure development, innovation, and the supply of goods and services has grown tremendously. In the same vein, the private sector has a significant role to play in conflict prevention and peace building.
Philanthropic concepts such as corporate social responsibility, which has gained huge importance in the developing world while complex and somewhat difficult to define, present evidence that the strict separation between the private and public sectors is no longer valid. It demonstrates that the private sector, apart from being driven by profit, has a role to play in improving the welfare of the society that helps the sector to thrive.
With its immense resources, private-sector engagement in peace-building has the potential to yield very impressive results if it works closely with the government. Without a properly coordinated approach, the current efforts are scattered and fail to maximize their huge potential.
Business requires a stable investment environment and an administration that delivers consistent policy, a key ingredient in the success of any venture. Predictability in the policy and operating environment is critical in enabling the private sector to flourish and attract more new investment.
Conflict deters the creation of institutions that can help the government to collect the revenue that it needs to create an enabling environment to spur prosperity.
At the micro-level, corporate responsibility initiatives can play a role in increasing the transparency, accountability, and inclusivity of a company’s operations. At the macro level, businesses can champion the rule of law, human rights, labour rights, environmental issues, and anti-corruption initiatives.
As the former UN Secretary-General, Kofi Annan once remarked; shared prosperity means, shared responsibility. “All of us — the private sector, civil society, labour unions, NGOs, universities, foundations, and individuals — must come together in an alliance for progress,” Annan said.
The private sector can catalyze collaborative action to advance peace by creating strong partnerships with organizations working on peace building, turning goals for peace into actionable projects at different levels. The private sector has the power of innovation and the ability to create many of the solutions needed to address the challenges the world is facing today.
Corporates should not only be seen as a source of funding but a full partner in a long-term commitment to the goals of a nation, in a mutually beneficial relationship. The private sector can be involved in product development, and policy dialogue as a partner in the forming of models of development, investment, and job creation – private sector partnerships create opportunities for income generation and create production opportunities.
Ultimately, businesses must recognize that peace, justice and strong institutions are beneficial to the long-term viability of their organizations and are foundational for achieving sustainable development.