The key to Africa’s development
Africa is becoming a continent of growth and possibilities because its youths are chasing entrepreneurship over traditional employment.
The number of unemployed youths in Africa is rising everyday and the numbers of jobs are very few. Some of the reasons for high unemployment rates include the actual rising population of young people, lack of a well thought out employment plan and poor policy choices.
It is estimated that by the year 2050, the number of young people in Africa will have risen to 830 million. These number puts Africa as the leading continent with majority manpower. Entrepreneurship is therefore seen as one of the most sustainable job generation tools in Africa. The youths, through business practice, have the potential of growing the economy of the African continent.
Among the countries top of entrepreneurship are Uganda, Cameroon, Botswana, and Angola. In these countries, unemployment rates are so high that the youths have to come up with alternative ways of making a living for themselves and their families.
Many youths are willing to take a risk, sacrifice and put effort to create solutions that no one else can provide in various disciplines.
Entrepreneurship in Africa is seen as a major contributor to economic growth. Some of the areas well explored by entrepreneurs in Africa include hospitality, agriculture, transport, Information Communication and Technology (ICT)
African youths are looking to start businesses that not only create a solution to a specific need but businesses that are likely to bring good profit opportunities and a boost to the African economy.
Some of these businesses include Transportation, Agriculture, and Food chain supply and ICT.
With Africa’s growing infrastructure, the transport and logistics industry are a good way of participating in the continent’s social-economic growth as people will want to move from one location to another to trade or exchange services. Investing in taxis, shipping containers and other methods of moving goods and services from one point to another is a good way to make money and contribute to the economy.
Investing in agriculture is not only important for income generation, but it will also enable Africans to grow food and feed everyone. Agribusiness can also entail food processing which ensures that food waste is reduced, food supply is more stable, foods are available, and the prices are consistent in all seasons.
Information Communication and Technology (ICT) and the entire digital economy are necessary for economic growth. It is also important for fighting poverty and creating job opportunities. Due to technology, the world has become a global village where communication has been made possible and trade easier.
ICT is one of the industries that are
doing well in Africa. Mobile money transfer and online banking are just some of the transactions that are now possible across Africa. Many institutions of learning are also embracing e-learning in line with the evolving digital world.
The African governments must support young entrepreneurs to set up businesses by empowering them. This is by equipping them with the right skills and exposing them to the right environment so that they can learn how to conduct successful businesses. The government can also support young businesspeople by creating business forums where people could exchange ideas and learn from each other.
Like any other existing businesses, young entrepreneurs will also need investors to provide capital for their startups. The governments must work with banks and credit unions to ensure that these young people are financed and taught how to succeed in business so that they are able to effectively contribute to the economy.
Economic development programs, well-wishers, business investors, family, and friends must also be approached to invest in the youth’s ideas and come up with capital to start businesses.
Entrepreneurs in Africa will not only create a source of income for themselves but also provide job opportunities for fellow unemployed youths in an ever-growing society.
Startup businesses will also contribute greatly to the economy as the Intra Africa trade will be encouraged. This is if free trade between and within African economic bloc is encouraged in an effort to assist in the production of goods and services for the home market. It will also encourage setting up industries in different countries within Africa.
Entrepreneurship will also play a role in connecting Africa to the rest of the world as import and export trade happens.
The World Bank through its senior economist macroeconomics, trade and investment unit, Peter Chacha advised that there is a need to review the existing taxation laws to cater to the needs unique to startups in the African digital ecosystem. The majority of the startups are unable to scale to large businesses outfits due to regulatory law.
Lack of employment opportunity in Africa is truly a blessing in disguise as it has pushed African youths to entrepreneurship as an alternative way to make ends meet. These businesses are projected to boost the economy of Africa in the future.