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African continent. Due to
policy-based barriers to entry, private service companies have only a weak commercial presence in Africa. Where they do exist, incumbent providers—often monopolies created or sanctioned by the government—have the upper hand in the market. This has adversely affected the rate of investment in,
and the maintenance of, the transport infrastructure. The result is either incomplete (or nonexistent) transport connections or poor service quality where facilities do exist.
Where regulatory reform has taken hold, such as in South Africa, and there has been liberalization in
the provision of such services, especially allowing for the entry of foreign vendors who have skilled personnel and more advanced technologies, competition has led to substantial improvements in service delivery. With the rise of global trade networks engendering a premium to countries that exhibit greater economic flexibility and mobility in international commerce, it is increasingly clear that such improvements are critical ingredients of a successful economic development and growth strategy. Not only would
they help to facilitate trade,
they would be trade creating themselves, such as in tourism see chapter Box 5.9 illustrates what is at stake in this regard for Mauritius.
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