Africa, a continent often associated with poverty and economic struggles, is now experiencing a new wave of prosperity. With the rise of successful companies and entrepreneurs, Africa has begun to rewrite its narrative and showcase its potential as a thriving business hub. Alongside other emerging markets, Africa’s economic recovery has been attributed to a number of factors. These include a continent-wide surge in entrepreneurship and high levels of innovation, urbanisation, demographic dividend, growing market size, fast-growing consumption markets, and a number of others.
Access to technology and the Internet has become more widespread, which is one of the main forces behind this transformation. Due to this, African enterprises can now access new domestic and international markets and clientele. The development of mobile banking and electronic payments has also facilitated company access to financial services, supporting economic growth.
The increasing focus on innovation and entrepreneurship has been another important element. Governments and private sector organisations have started to invest more extensively in programmes and initiatives designed to promote an entrepreneurial culture, which has contributed to the development of an environment that is more hospitable to launching and expanding firms.
The growth of mobile phone-based enterprises has been one of Africa’s most prominent success stories in recent years. Businesses have been able to take advantage of widespread mobile phone use in nations like Kenya to develop fresh, cutting-edge goods and services. For instance, M-Pesa – a mobile money transfer service that enables users to send and receive money effortlessly using their smartphones – has grown very popular in Kenya.
Growth of e-commerce in Africa has been another success story. Businesses like Jumia and Konga have been able to use the Internet to link customers with products and services, giving the retail industry a much-needed boost. By presenting new prospects for small and medium-sized businesses, these companies have also been able to provide employment and promote economic growth.
In the area of ICT, Naspers – a media and Internet behemoth from South Africa – has risen rapidly and made significant investments in African technology firms. One of the company’s investments, a US$2billion wager on Chinese Internet titan Tencent, has contributed to increased sales and profitability for the business. One of the most valued corporations on the Johannesburg Stock Exchange right now is Naspers.
The expansion of infrastructural development in Africa has also made a substantial contribution to the continent’s economic success. The construction of roads, railways, ports and airports has benefitted through significant investment from governments and private sector groups, making it simpler for companies to move goods and reach new markets. This has boosted trade with other regions like Europe and Asia, in addition to improving connectivity inside the continent.
Growth of the continent’s economy has also been aided by the increased inflow of international investment. International investors and multinational corporations have started to invest in a variety of industries – including mining, manufacturing and energy, after realising the potential of Africa’s developing markets. In addition to generating jobs and boosting economic activity, this inflow of foreign capital has also improved the business climate in Africa by introducing new technologies and managerial techniques.
In recent years, the growth of Africa’s agricultural industry has also been a success story. Food consumption has increased due to population growth and urbanisation, and many African nations have been able to take advantage of this by investing in contemporary farming methods and technologies. This has raised productivity, enhanced food security and given smallholder farmers more possibilities to reach new markets and enhance their standard of living.
The natural riches of Africa have also contributed significantly to the continent’s economic success. Due to the abundance of minerals and other resources in many African countries, the mining and sale of these resources have been a substantial source of income for many countries. However, the emphasis on ethical and sustainable extraction methods – as well as the growth of value-added companies centred round these resources – have been crucial in ensuring advantages/benefits from these resources are widely distributed among the populace.
The continent’s economic prosperity has also been greatly influenced by Africa’s expanding involvement in the world economy. Many African nations have developed into significant marketplaces for international goods and services, resulting from expansion of the continent’s middle-class and rising purchasing power. The increased relevance of Africa as a supplier of raw commodities and a location for foreign investment has also aided the continent’s economic development. This has also increased the number of partnerships and international trade agreements with other regions, which has expedited the exchange of goods and services and opened up new business and trade prospects.
A vital part of fostering economic growth and development in Africa has been served by Special Economic Zones (SEZs). These zones, which offer special tax and regulatory incentives to businesses, have been established in many African countries to attract foreign investment and encourage the growth of export-oriented industries. In Ghana, the Dawa Industrial Zone located 25km east of Tema has become a prime example of a successful SEZ. The zone, which is in proximity to the international airport and Tema Harbour, has attracted a number of manufacturing and production companies; and has created jobs and economic opportunities for the local population.
In order to foster economic growth and development, the Ghanaian government has been working hard to establish a favourable business environment. To make conducting business easier, the nation has put in place a number of laws and reforms – including cutting back on red-tape and modernising the regulatory framework. As a result, the nation’s general business climate has improved; attracting investment, generating jobs and fostering growth.
Ghana’s economic development has also been significantly influenced by its advantageous location in the sub-Saharan region of Africa. The country has been able to gain from rising trade and investment movements in the region because of its good connections to surrounding African markets. Additionally, rapid and simple access to international markets is made possible by the area’s proximity to Tema’s harbour and airport, which has boosted exports and the nation’s economy.
The government of Ghana has also been working to promote development of the country’s small and medium-sized enterprises (SMEs). This has included implementing policies that improve access to finance, such as the establishment of a microfinance scheme and creation of a venture capital fund. Government has also been working to improve the environment for SMEs, such as by providing training and support for entrepreneurs.
Development of the tourism industry in Ghana has also been a significant contributor to the country’s economic growth. The country’s diverse culture, history and natural attractions have made it a popular destination for tourists, and government has been working to promote the industry. This has included development of new infrastructure and the promotion of Ghana as a destination for eco- and cultural tourism. As a result, the tourism industry has created jobs and generated income, and also helped promote the country’s image as a destination for business and investment.
Overall, Africa is experiencing a new wave of prosperity with the rise of successful companies and entrepreneurs. Factors such as widespread access to technology, entrepreneurship, innovation, and infrastructure development have contributed to this transformation. Special Economic Zones (SEZs) have also played a key role in promoting economic growth, as seen in the Dawa Industrial Zone of Ghana. The Ghanaian government’s efforts to create a conducive business environment and promote tourism have also contributed to the country’s economic growth. Africa’s economic story is changing, and it is one of hope and potential for the continent.
The writer is an award-winning financial advisory, trade and transformation consulting professional with almost two decades of enterprise leadership experience across EMEA.
