Youthful ideas will light Dark Continent

TWO weeks ago, I visited the African Leadership Academy, a school in Honeydew, Johannesburg, that has students from just about every corner of Africa.

The academy was founded by a group of friends who have a passion for Africa and believe that, through its youth, we can change the continent for the better.

Its model is unique — it is a school for top African students aged between 16 and 19 who go through an intensive two-year preuniversity programme that focuses on entrepreneurship and leadership.

Most end up in the best universities in the US. A significant majority return to the continent to put their training into practice in the hope of changing this once Dark Continent into a dynamic, prosperous one.

A few days ago, I attended the Anzisha awards, an event that celebrates the entrepreneurial achievements of young people across the continent. I was very impressed by the creative innovations and business ventures that are aimed at enhancing the lives of communities.

The young innovators’ business ventures ranged from solar panels for rural Tanzania to creating a platform that allows 128 companies to buy, sell and pay for services online.

I gave a talk to young entrepreneurs who are part of the iCre8SA programme for young innovators in South Africa, which provides a supportive space for young people to test their innovative ideas and gain skills that will help them with future ideas.

We discussed the state of the South African economy and the opportunities and challenges of starting a small business as a young innovator. It is then that I realised that many of our growth policies and discussions about the future of South Africa (and the continent) have largely excluded the youth.

Africa remains the continent with the greatest concentration of young people, whose skills, energy and passion are crucial in driving the continent’s long-term growth and competitiveness, yet despite being endowed with this enormous human capital, the space for young people to participate in their economies is limited.

The current generation of youth has arguably the greatest opportunities of any generation yet, but faces many challenges.

In South Africa, small- and medium-sized enterprises account for about 67% of private employment, compared with a global average of 77%, and as many as 70% of the country’s SMEs fail in their first year, one of the highest rates in the world.

Regulatory compliance was noted by young innovators at an iCre8SA youth lab as one of the main challenges to starting a business.

While South African economic policy values entrepreneurship highly, the

Many of our growth policies have excluded the youth

regulatory environment means there is a great administrative burden.

Frequently changed and conflicting regulations across multiple government departments, and poor communication and access to information compel innovators to spend a disproportionate amount of time complying with regulations.

The other significant challenge noted by young innovators is access to finance from banks and the monopolistic nature of South African industries.

Small businesses irrefutably remain critical to the development of any nation’s economy as they are an excellent source of employment, and help in the development of local technology and entrepreneurs.

Leoka is an economist