By Onome Amuge.
Jim Clifton chairman of the globally renowned polling and analytics firm, Gallup,has urged
Africa to develop a system to identify and nurture entrepreneurial talent, in order to boost economic growth and create jobs for the continent’s large youth population.
Gallup made the recommendation,stressing the importance of entrepreneurship as a driver of economic development,when he delivered the 7th annual Babacar Ndiaye lecture on 14th October 2023. The lecture was held in Marrakech, Morocco, with the theme “The New World Order and the Future of Entrepreneurship in Africa”. The Africa Export-Import Bank initiated the annual lecture in honour of its founder, Babacar Ndiaye.
It was the first time that the lecture series was being held in Africa with the IMF/Annual Meetings being held on African soil for the first time since Nairobi in 1973.
In his remarks, Benedict Oramah, president and chairman of the board of the bank noted that global trade has changed in recent years, particularly with the slow-down of globalization and a backlash against it. This, he observed, has had an impact on Africa, as the continent was poised to benefit from rising wages in China. However, the uneven benefits of globalization have led to a backlash against it, with many people in the West feeling left behind and turning to anti-globalization movements and parties. Oramah believes that Africa needs to take a different approach to its economic development, one that is less reliant on global trade.
The uneven benefits of globalization have led to a backlash, with populations in the West and some political leaders turning against it. Oramah observed that this has had negative political consequences, including the rise of anti-globalization movements and candidates. He noted further that this backlash has also led to a decline in foreign direct investment and technology transfers to developing countries, as well as increasing trade barriers.
According to Oramah, this new era poses challenges for Africa, as it must adapt to this changing global environment. He therefore, emphasizes the need for Africa to prepare for this new era by building resilient and sustainable businesses.
“The world as we know it has dramatically changed, and it has changed for the worse at a time when Africa was expecting to benefit from globalisation that pulled almost a billion people out of poverty in China. However, as businesses explore new investment destinations, they can either consider their home country or elsewhere. What of Africa? What must we do to attract these investments in Africa?” Oramah questioned, introducing Clifton as someone with the capacity to help address these questions.
Clifton, in his keynote address argued that the world faces a major challenge in terms of economic growth, which has slowed in recent years. While many countries have focused on innovation as a way to stimulate economic growth, Clifton opined that this is not the most effective approach. Instead, he suggested that building businesses and creating new jobs is a better way to boost economic activity and bring innovation to life. Clifton suggested that governments should focus on supporting and growing entrepreneurs rather than investing in systems to facilitate innovation.
Clifton maintained that innovation is not enough to generate economic value, adding that customers must also be willing to pay for the products and services that innovation produces. Furthermore, Clifton suggested that entrepreneurship requires a different skill set than innovation, as it involves a more practical and business-oriented mindset. Therefore, it is more important to support and encourage entrepreneurship than it is to focus solely on innovation. If we invest in this area, Clifton argues, we can make a significant impact on our economy.
Clifton stressed that 3 per cent global economic growth over the next generation would be a failure, and that we must achieve a growth rate of 4.5 per cent to reach $300 trillion. To reach this target, Clifton suggests that Africans must understand the role of innovation as the cart and the role of entrepreneurship as the horse pulling the cart. He emphasizes the importance of entrepreneurship in driving economic growth, and stresses that Africa needs to focus on supporting and encouraging entrepreneurs if it wants to achieve its economic goals.
According to Clifton, only about five people out of every thousand have the capacity to build large companies and have an impact like Steve Jobs, the late founder of Apple. This means that there must be approximately 7.5 million such people in Africa, and the challenge is to find them. To do so, Clifton suggests using a “dragnet” approach to identify and support entrepreneurs. He also argues that Africa has a wealth of talent, and that this talent has the potential to create some of the biggest businesses in the world.
Hippolyte Fofack, chief economist of Afreximbank,in his closing remarks, emphasized the importance of entrepreneurs in driving economic growth, and noted that Africa needs more capital and entrepreneurship to fuel economic production. He pointed out that Africa’s abundance of natural resources and labor is not enough, and that entrepreneurs play a critical role in filling this gap. Given the low levels of employment in Africa, Fofack argued that entrepreneurship is not a choice, but a necessity.
“It takes an ocean of entrepreneurs to develop a continent and entrepreneurial governments to effectively facilitate and coordinate their actions as we have heard tonight,” he added.
Fofack commended the role of Afreximbank in supporting entrepreneurship in Africa, through its subsidiaries and initiatives such as the Fund for Export Development in Africa, Creative Africa Nexus, and the African Medical Centre of Excellence. These initiatives, he noted, provide support to entrepreneurs and small businesses across the continent, helping to drive economic growth and development.
