Africa, the hidden economic power house

Africa, the hidden economic power house

While foreign Business men and investment holdings from other parts of the world, notably Asia Europe, Middle East and Asia continue to troop into the African continent due to the availability of investment niches and opportunities in virtually all sectors of the African Economy,Many sons and daughters of the continent have not been able see the opportunity Africa holds,as the next big emerging market.They continue to leave their respective countries for what they call greener pastures elsewhere in other parts the world. Many reasons that are, not limited to unemployment, Bad Governance and conflict etc have been advanced to backup such massive and risky exodus. The fact that African governments have not proactively strategized for a common solution, leaves many young men and women with no choice. The expenditure of human lives keep increasing as many attempt to travel across the Sahara Desert and Mediterranean Sea to what they consider an economic safe heaven in the European blog. Some solutions designed by affected sub-Saharan states have not abetted the number of youths nursing the ambition of leaving.The risk associated to this illegal immigration has still not scared African Economic refugees who today constitute a problem in Europe and other countries.

Though a great majority of African youth still believe they can only make it out of Africa, the new scramble for Africa by business interest from other parts of the world remains a true and glaring indication that Africans can make it in Africa through the development of business initiatives. Accepting that a lot work needs to be done for African people to sustainably reap the benefits of its unlimited potentials, Recently the creation of the AfricanContinental Free Trade Area (AFCFTA) by the African Union (AU)is a welcome companion for the younger generation. This new development that is second to Sub-regional integration projectschampioned by Sub-Regional organizations in Africa once more enlarges the scope of entrepreneurs and in Africa, recently most big business names in the continent are taking a Pan African approach in their expansion strategy. To reinforce reawakening of young people in Africa, we can only say one thing here; that each and every African country has its own qualitative and quantitative uniqueness in the primary, secondary and tertiary sectors that If transformed into goods and services, can be traded across borders in Africa and the rest of the world. Business conscious individuals and investors are already releasing this fact and are taking appropriate action, why not follow the train and make it big.

To achieve sustainable economic development for Africa through business and investment, African Governments, Intergovernmental Organizations, the Private Sector, the African Diaspora and theYouth in Africa need to play their respective rules:

For Governments:

African Governments still have the opportunity to provide an enabling environment for the creation and operationalization of more enterprises and startups that could be a source of massive employment by doing the following:

  1. Enforce good Governance in the management of public affairsas a tool of the achievement of Sustainable Development Goals (SDG’s);
  2. Conceive and develop sustainable Infrastructure that create direct and indirect jobs for the ever growing young population;
  3. Create a useful and sustainable relationship or partnership with the diaspora that should be a veritable engine for investment;
  4. Engage profitable Public Private partnerships (PPP’s) that can boast local content and technology transfer especially in the promotion local transformation and processing;
  5. Make accessible to the business community the necessary infrastructure and services that render local businesses competitive;
  6. Reform and reorientation of the education to fit the needs of the job market;
  7. Craft policies that should enable financial institutions grant loans to serious young entrepreneurs;
  8. Implement all useful bilateral and multilateral conventions that are aimed at making life better for the population.

With fool knowledge of fact that too much attention to the extractive industry have failed and continue to fail many African States in one way or the other, We in RE-KONNECT AFRICA believe that Agriculture is and remains a great niche with extraordinary potentials. Recent developments in some African States like Rwanda, Kenya, South Africa and to an extend Nigeria are true indications that the agricultural sector can be harnessed not only to feed the population,contribute to GDP, but to provide sustainable jobs along the value chain of various agri-business initiatives. In other hand, to support agri businesses and other sectors of African economy, knowledge based economic model should be promoted by governments as a source of domesticated tech solutions that can go a long way to provide solutions the many problems faced in other areas of the economy in the continent and the rest of the world.

Business Consultant-NTerence B

The Private Sector:

The growth and the dynamism observed in the business world requires that private sector in Africa should engage innovations through research and development to stand the complex competition imposed by market forces. The prescriptions of the World Trade Organization (WTO) associated trade deals which some African countries are involved demands that the private sector in Africa should:

  1. Invest in research and development as a necessary ingredient for innovation that makes them competitive in the international market place;
  2. Partner with governments through various channels in engaging international standards and norms for production processes, that are but not limited to quality, environmental protection and safety;
  3. In other to create jobs and maximize profits, it is advisable that primary sector operators should engage on the spot transformation of primary products rather than creating jobs elsewhere out of Africa by exporting such primary products like minerals, wood, cocoa, coffee and rubber at their raw stage.
Business Consultant-N Terence B.

The African Diaspora

The contribution of the African Diaspora to Economic Development in Africa cannot be over emphasized, according to the World Bank forecast, remittances to sub-Saharan Africa will increase from 39.2 in 2017 to 39.6 Billion Dollars by 2019. Curiously, remittances have contributed enormously to the GDP of some African States in form of cash transfer taxes. Recent studies by the World Bank indicate that cash remittances to Africa,bypass Direct Foreign investment in the continent and Overseas Development Assistance (ODA). Unfortunately, according to this statistics, this cash transfers have in most cases been used to pay for education, health services, and basic necessities for families in Africa. To transform cash remittances to a sustainable source of GDP, the African Diaspora must start doing the following;

  1. Carry out studies that should map out the available investment areas in their respective geographic areas here in Africa;
  2. Also carry out due diligence to avoid being duped by unscrupulous people who will want to take advantage of the fact they are not effectively present;
  3. Partner with foreign potential investors as a bridge that should drive Foreign Direct Investment (FDI) in their respective countries;
  4. Consider investing their own funds in identified genuine profitable business ventures as well, this will not only profit them but will create jobs and contribute to economic growth in a sustainable manner;

The youth in Africa

The African population continues to increase, the age bracket between 18 and 35 is expected to double by the 2050 (UN Projections), unfortunately, this youth population has not constituted any dividends across the continent. Most African governments have consciously or unconsciously avoid investing in the youth, this has created a youth bulge characterized by unimaginably high youth unemployment, that is, why many young engage the dangerous route to Europe why others especially young girls are forced to early marriages. Looking at the situation at hand, it becomes clear that young people who constitute a great asset for Africa have to;

  1. Engage their respective governments by advocating for the amelioration of their plight through government policies;
  2. Enroll in professional and vocational training courses, and in cases where there are no finances, there exist several opportunities online for a start;
  3. Scan their respective environments for existing problems that can be transformed into profitable businesses;
  4. Develop business bankable business plans and make sure associated concept notes are generated for use in the search for funding;
  5. Venture into peer partnerships, this can easily attract funding from governments, donor organizations as well as potential foreign investors;
  6. Develop a mind set to take any initiative to success, never have divided minds when engaged in a project, they most see what those who are not involved are not seing, by not giving up during hard times, hard times are always there to strengthen entrepreneurs.Down load and upload your businesses and services on this Mobile App,Re-Konnect Africa for free ,to expose your initiatives.
Business Consultant-N Terence B

Intergovernmental Organizations:

Intergovernmental Organizations ( United Nations Organization, African Union, World Bank, African Development Bank, and host of programs like the New Partnership for Africa Development NEPAD) have been of paramount importance to development in Africa, especially in the areas of Peace and Security, Good Governance, infrastructure development, Education and Health. Focusing on the creation of jobs, we realize much is to be done to make Africa take the driver’s seat as far as sustainable economic development in the continent concerned:

  1. Africa have to continue pushing for regional integration in the continent under the framework of operationalizing the African Continental Free Area (AFCFTA) that covers all 55 African countries making it the largest in the world. Considering the existing setbacks in the ratification of AFCFTA treaty, we think African Sub-regional Organizations should take the relay, market and propose useful amendments to this project that embeds great potentials for Intra African Trade. It is good news that some African States have abolished visa requirements for Africans, this is an exemplary move that should be emulated to boast intra-African trade;
  2. The fact that Security remains a greater challenge for progress in Africa calls for the full operationalization of the Africa Peace and Security Architecture (APSA) including the associated early warning systems that should signal security issues at their early stages for effective mitigation efforts.
  3. In the Area of infrastructure development in Africa, we recommend the efforts made so far by the ADB, NEPAD and the World Bank, but much needs to be done to close the large gaps that exist in the area of infrastructure, especially energy, transport and telecommunications;You can download and upload your business for free on the Mobile App Re-Konnect Africa and benefit from its rich categories and exposure.
Business Consultant-N Terence B

One thought on “Africa, the hidden economic power house

  • admin

    Nice !!!


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