Businesses in Africa are usually organized along ethnic and national lines. While there are national-level initiatives that exist, those have proven to be rather weak. Furthermore, many of these private initiatives are not very effective. Often, African entrepreneurs have a hard time gaining entry to the international business community and thus, are at a disadvantage when trying to open their own businesses. For all these reasons, a good number of African-owned businesses have trouble building a foothold in the global market.
At the same time, Africa as a region is characterized – at least in part – by an absence of institutional programs. That is, the means for building and maintaining Africa’s infrastructure does not always lay with the governing bodies like countries and cities. Instead, most of the finances for social programs come from businesses – and the entrepreneurs that manage them.
In other words, Business is in charge of the business, and businesses are in control of their business. Africa is a continent in transition. The country’s economic crisis may have had a negative impact on its business environment, but African leaders are continuing to invest in and develop their country.
What public policies are of utmost importance in Africa?
In 2022, 54 Member States of the African Union signed the AfCFTA Agreement which aims to create a single market, “deepening the economic integration of Africa” and aid the movement of capital and people, facilitating investment.
Currently, Africa is suffering from a major lack of resources, as most of its resources are natural resources and there are few and less developed alternative sources of supply. African economies will be under threat of collapse if the current oil production rate does not continue to rise. Therefore, policies must be drafted that develop alternative energy sources and solutions for our energy crisis. Ghana in particular will benefit from the increased prosperity brought about by the increase in oil revenues.
How can entrepreneurs inform these policies?
Entrepreneurs can foster productive policy in Africa by partnering with African governments and outlining systems that will most effectively grow and sustain the business.
The African Development Bank and the European Union have joined forces to support the growth of African financial institutions through a special program. This program was launched in April 2000. One of this year’s projects is the Partnership for Africa’s Development (PAD). This is a new program that is going to be a collaboration between the World Bank, the EU, regional and subregional development organizations, and local businesses. This will allow African companies to access loans and financial services that can help them to grow, attract capital, create jobs, and develop their economies.
Furthermore, Entrepreneurs should start by taking a close look at how business and entrepreneurship policy works in their own countries and in other countries around the world.
Doing so will help African entrepreneurs better understand how to engage in policymaking, determine how best to work with other governments, and begin to build networks to support their business plans.
The best way to learn this skill is to visit Africa and observe entrepreneurship firsthand.
And that is one of Africa’s best educational and economic opportunities.
