Africapitalism
Transforming the African landscape through commerce
Africapitalism is defined as the economic philosophy that the African private sector has the power to transform the continent through long-term investments, creating both economic prosperity and social wealth.
The great continent, stands at the cusp of significant growth or total destruction. Even under current Covid-19 influenced, global economic downturn, Africa still boasts some of the fastest growing economies. These include Rwanda at 3.5%, Uganda at 3.5% and South Sudan at 4.9%. A few notable, positive growing countries include; Ethiopia, Senegal, Benin, Tanzania, Mozambique, Ghana and Kenya.
Overall 18 out of 55 African states will enjoy economic growth in 2020, that translates to almost third or 33%.
“the majority of youth in Africa do not have stable economic opportunities. Of Africa’s nearly 420 million youth aged 15–35, one-third are unemployed and discouraged, another third are vulnerably employed”
According to the Mo Ibrahim foundation, based on data from the United Nations (UN), almost 60% of Africa’s population in 2019 was under the age of 25, making Africa the world’s youngest continent. Projecting that the median age in Africa is going to be 19.8 in 2020.
The move by African governments to place more and more emphasis on agrarian reform, is quite flawed and based on their own imperative to exhibit relevance and kick the bucket down the road, while remaining in power for as long as possible.
The simple facts are, Urbanisation is real, Urbanisation is on the increase and young people no longer want to be engaged in rural economic pursuits and the hard living conditions associated with an agricultural commercial undertaking.
Agrarian reform should thus focus on effective development of value chains, where agriculture and food production form the basis of the reform, but better opportunities developed for young entrepreneurs and jobseekers to find engagement within the value chain. These can be in the form of distribution, marketing and sales functions. Great businesses can be build on these cross-sections of the agricultural industry.
We do not all have to farm to be involved in agriculture — and dare I say, some personality traits should not be allowed anywhere near land management and production of food.
Cross Border Trade
The African Continental Free Trade Agreement (AfCFTA) entered into force on 30 May 2019. The agreement initially requires members to remove tariffs from 90% of goods, allowing free access to commodities, goods, and services across the continent. Like all agreements, this is merely a suggestion for good business — it is not mandated.
Entrepreneurs and Africapitalism will need to take centre stage in ensuring that trade does indeed occur. Much like the European Union, made strong through movement of labour and goods between member states, the AfCFTA promises to allow access to significant growth opportunities for member states.
Though traction exists within the Southern African Development Community (SADC), this needs to be intensified. Greater emphasis should be given to improving trade in other regional economic communities of East, West and Central Africa. Linking up all that trade, under the AFCFTA for Pan-African trade, and commercial development.
Africa is the land of traders, of travelers and merchants — it is time that we use our accumulated knowledge, historical perspectives and geographic advantages to better the African story.
As the West has done in exploiting Africa for their enrichment, now, we as Africa need to do the same, for our own enrichment, development and growth story.
