Start-ups in Africa need fiscal support to take off
“ENTREPRENEURSHIP means Africans no longer have to find a job or be trained to be employees. Instead, it will enable our young people to create their own jobs, become employers, and take charge of their futures, instead of letting the future happen to them.”
The above quote from Nigerian Tony Elumelu, one of Africa’s most prominent philanthropists is a clear submission of the role of entrepreneurship in economy growth and job creation in Africa.
With a majority of African nations diversifying from traditional sources of income, entrepreneurship is increasingly seen as a key to economic growth.
Armed with abundant natural resources, human capital, cultural diversity and self- determination, Africa has in the last few years recorded a boon in entrepreneurial projects from Cape to Cairo.
Enterprising Africans who are spreading their tentacles on the continent and beyond, offering various goods and services, continue to drive home the opportunities inherent in entrepreneurism and, especially at a time of rising competition abroad and commodity pricing fluctuation.
From continental- grown hubs of innovation, mobile service provision, energy, robust farming and food provision projects and a growing network of transportation service, Africa has in the last few years become a hive of business activities.
The trail of success and growth in some of the sectors would have further progressed had Covid-19, not had a huge pinch on the global economic activities.
Notwithstanding the negative impact of Covid-19, the entrepreneurial passion of many Africans is unmatched.
A growing wave of grassroots “self-starters” are leading by example and raising the bar for Africa in competitive entrepreneurship, a development that has kept the economic activities alive, despite a number of challenges Africa has had to contend with.
Although the investment, innovation hubs may not match that of the Silicon Valley in the United States, the zeal and level of determination among some of the already established and emerging entrepreneurs on the continent is what Africa needs, to attain its potential.
Brilliant young men and women are showing high levels of ingenuity, taking risks and defying obstacles to bring their start-ups to life.
What also gives them a competitive edge is that the established and emerging crop of African entrepreneurs do not only have an eye for business, but they are among some of the most confident in the world in their ability and skills to start a business.
Recently publicised innovations from young Africans in different sectors points to a clear vision and determination to give the continent a competitive edge among other established economies.
Hardly a week passes without the continent recording a success story of new invention, launch of a competitive product on the market and better still, some brainy African joining high tech global companies, which on its own is an affirmation of the abundance of talent, skill and knowledge.
Recently, a Zimbabwean molecular biologist made news by creating over 600 unique ice cream flavours using indigenous produce.
Tapiwa Guzha, who is based in Cape Town used his PhD in Molecular Biology to make more than 600 inventive ice cream flavours, ranging from baobab to edible clay.
In an interview, Guzha said he was on a mission to change the way Africans see their food, hence his decision to create these various icecream flavours for Africa.
He said he opted to use indigenous African flavours because he wanted Africans to embrace and be proud of their heritage.
Success stories of entrepreneurship have also been recorded elsewhere in Africa, giving hope that Africa is on a positive trajectory.
Nigerian Jason Njoku, the founder of iROKO Partners, and iROKOTv, the leading online streaming platform in Africa, is among Africans, who are also positively contributing to entrepreneurship in Africa by providing entertainment.
In Rwanda, Jean Nzeyimana is a young and brilliant innovator who is transforming waste in his community into briquettes, a greener
alternative to wood charcoal, after forming a cleaning and renewable energy company called Habona.
With the abundance of success innovative stories in Africa, entrepreneurship can best be described as “the spark of prosperity”, that needs the support of everyone to keep it burning.
It is paramount that African enterprise needs to be matched by public-sector commitment, because Government cannot go it alone.
On their part, governments would need to continuously provide conducive environments, where entrepreneurship can thrive with minimum challenges.
Indigenisation policies, which Zimbabwe and other African countries have, open up windows of opportunities by availing natural resources and enabling policies to promote start-ups.
Policy implementation on existing laws becomes the glue that is needed to create flourishing environment for entrepreneurship.
However, like any other venture, entrepreneurship is not without hurdles, because of confounding challenges that often confront a number of start-ups.
Lack of proper funding models, unavailability of cheap money and stifling operating conditions are among major challenges emerging entrepreneurs face across the continent.
All those obstacles can be overcome by creating sustainable and user-friendly policies and platforms
that support start-ups.
Government’s involvement is crucial to ensure that there is structural support and resource mobilisation from different platforms.
Successful entrepreneurs also have a role to play through mentoring, providing market linkages and creating revolving funds for viable start-ups.
Africa, is at a stage where it needs to debunk the importance of foreign donors to bank- roll continental projects, who in the end, will claim intellectual property rights on home grown projects.
Local funding from established entrepreneurs, financial institutions and private-public partnership are crucial in keeping the entrepreneurial spirit alive.
On the hand, Africa needs to put its resources where its future lies - its own people.
The continent cannot continue to export its raw materials and resources, at this juncture, as these can be used to provide employment and add value to the continent.
The advent of intra-African trade through the African Continental Free Trade Area (AfCFTA), is a huge business opportunity and has the potential to further promote entrepreneurship in Africa.
By promoting trade among African countries, AfCFTA would be strengthening the continent’s industrial base and ensuring that Africa produce goods for itself through its fast emerging entrepreneurs.
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