Future of Africa is in entrepreneurship by youth

There is no doubt the events of the past two years have had a devastating impact on the African economy. According to the International Labour Organisation’s report, World Employment and Social Outlook Trends 2022, at least 13.3m jobs and income opportunities were lost as a result of the pandemic. This has only made the severe economic difficulties facing the continent worse.

But even as the effects of the Covid-19 pandemic linger, green shoots are starting to rise up. Thanks to a growing crop of young, tech-savvy entrepreneurs, as well as rapidly accelerating connectivity rates, Africa’s next chapter could be brighter.

But that will only be the case in a collaborative environment that brings together entrepreneurs, corporates, and governments.

If you want a glimpse of how bright that future can be, you need only look at how many young African entrepreneurs are building innovative products and services across a variety of sectors.

Take Farmhut Africa, for example. Owned by 21-year-old Munyaradzi Makosa of Zimbabwe, Farmhut Africa is an AI-powered marketplace connecting farmers to markets that pay fair prices for their produce in the SSA region.

Another entrepreneur doing incredible things in the agricultural space is 22-year-old Tafadzwa Chikwereti, also in Zimbabwe. He launched eAgro in March 2020 to create a platform that fosters resilience and profitability for smallholder farmers using data analytics and machine learning.

In the mobile space, meanwhile, SA’s Lipa Payments, created by Thando Hlongwane – an Anzisha Prize fellow – has the potential to be an emerging unicorn. It aims to bring Africa’s unbanked population and informal businesses into mainstream banking through mobile. The company recently raised an investment of R10m and is expanding across the continent.

All of the businesses mentioned employ young people and create earning opportunities for others both directly and indirectly.

Our research shows that 60% of the businesses owned by young entrepreneurs or fellows of the Anzisha Prize have created 2,500 work opportunities by starting and scaling up their businesses.

Of course, these entrepreneurs can only do so much, especially if they aren’t given the necessary environment to thrive in.

African governments have often relied on big business and foreign direct investments to bolster economic growth and job creation. The results of this approach have, at best, been mixed. Instead of relying on big business, African governments need to focus efforts and resources on improving the chances of success for small and medium-sized businesses.

Additionally, they should focus on building a culture of entrepreneurship from the ground up among children and teenagers. Ultimately, the goal should be to create a generation of job creators rather than just job seekers.

Big business has a role to play in creating that environment too. It is, after all, in its own interest. By integrating these businesses into their supply chains, they help uplift the wider population, who can then spend money on their products and services.

Africa’s young entrepreneurs are building solutions that have the potential to change not just their own countries and the continent but also the world. Given the right environment, they can create numerous jobs along the way. In a region facing major unemployment struggles (especially among young people), it’s critical they be allowed to do so.