In a detailed examination of the state and potential of entrepreneurship in Africa, Eric Osiakwan and Yaw Owusu emphasise the challenges that many local businesses face in achieving longevity and competitiveness on both a regional and global scale. The authors highlight that less than one percent of businesses founded on the continent manage to survive to see successive generations. They attribute this phenomenon to various factors, including an often lack of long-term vision among African entrepreneurs and insufficient planning and execution capabilities.
Their analysis suggests a significant paradigm shift currently underway among African tech founders, moving away from the traditional narrative of seeking opportunities in Western countries towards a focus on innovation within Africa itself. This shift, they point out, manifests in the desire of young entrepreneurs to create their own technological solutions—such as advancements in solar energy, mobile banking, and other digital services—designed to address pressing local issues. The authors posit that this trend can ultimately help produce technology that rivals or even surpasses Western competitors.
Moreover, the authors note that the current generation of entrepreneurs has gained substantial technical skills and business acumen, often through non-traditional educational pathways. The article argues that this generation, lacking prior family histories in entrepreneurship, displays an impressive capacity to dream big and translate those dreams into viable business ventures. Notably, they recognise the story of Ken Njoroge and Bolaji Akinboro, the co-founders of Cellulant, who exemplified such entrepreneurial spirit. Their journey began in a café with a vision penned on a napkin, leading to the establishment of a fintech business that now operates in 35 African countries, processing considerable sums in digital payments.
The analysis indicates that the African Continental Free Trade Area (AfCFTA) stands as a significant enabling factor for the future success of these entrepreneurial ventures. Established to enhance intra-African trade by eliminating tariffs and creating economic synergies similar to those of the European Union, AfCFTA encompasses 1.5 billion people and possesses an estimated economic value of $3 trillion.
With the rise of a burgeoning middle class in Africa, the authors further illustrate the potential for increased technological consumption. According to the African Development Bank Group, the emerging middle class, which had accounted for 34% of the population in 2011, is projected to expand to 1.1 billion people with significant purchasing power by 2060. This demographic shift is anticipated to support a thriving market for new technology-driven solutions.
In light of the compelling growth potential driven by AfCFTA, combined with increasing consumer expenditure, the article concludes that the contemporary landscape presents a fruitful environment for African tech entrepreneurs looking to cultivate multi-generational, multinational corporations. The developments within this sector hint at transformative possibilities for the continent's economic future, fundamentally reshaping the entrepreneurial narrative in Africa.
Source: Noah Wire Services