The State of Entrepreneurship in Africa

Quite often I have been quoted and interviewed on my thought process on the State of a Nation not one or two but many. Today I take myself through that mental journey on the State of Entrepreneurship in Africa as a whole.

" Entrepreneurship is the cornerstone to African development and the key to local value creation. Economic growth and job creation are hinged upon the success of the entrepreneurs all round" - Dr. Ambassador Tal Edgars

Necessity is the mother of invention and a certain truth in that statement is realised by many African entrepreneurs. Many of their business ideas are born in a situation of scarcity. True.

However that said, I still applaud the ingenuity and fortitude of those that rise above the limitations considered like basic infrastructure. The new wave of Entrepreneurs has seen a rise in such determined people who even create code in vernacular. This is a true testament to the wealth of talent in Africa and the drive to match their international counterparts.

Personally as a private equity investor and Entrepreneur, some of the startups have registered a return-on-investment upwards of 20% mainly because of the growth in local economies, the rise of a middle class and benefits of expanding a company beyond local borders.

WHAT NEEDS TO BE DONE?

African governments have a critical role to play. Not to mention that policy makers really need to galvanise resources and channel policy towards finding lasting solutions. Governments need to:

• Unlock reserves for youth training programmes
• Invest in quality education
• Sponsor facilities for E-learning
• Open up procurement to younger service providers with a keen objective to grow them
• Deregulate key sectors such as banking, energy and telecommunications

All in all fewer slogans are required and more tangible actions and results are needed. African economies need to be transformed into knowledge based economies moving away from commodities towards a modern way where innovation excels.

We must allow African entrepreneurs a chance to make a mess of things, then given the latitude to fix it, through a mix of mentorship, extended credit terms, technology and patience in the market.

This heritage month as we celebrate in South Africa, I salute all African Entrepreneurs who have taken the chance and belief in creating a better Africa.