Let me ask a question: How much longer will we, as Africans, be content with the status quo? For over a century, we have been at the receiving end of global forces shaping the world, rather than active participants in shaping it ourselves. If asked to name a recent African innovation that has reshaped the world, many of us would struggle to find an example. This is not because we lack potential but because we’ve grown comfortable with conversations and narratives that encourage complacency. It’s time for a radical shift.
In our environments, particularly where businesses are financed, there is a growing trend of glorifying small businesses. Starting a business is celebrated as an achievement, but staying small is normalized. Let’s challenge this mindset. Small is not always beautiful when it comes to the economic potential of Africa.
Take, for example, the concept of “gatsbys” in South Africa—a local culinary favorite. Despite its cultural significance and potential, it remains a largely untapped export opportunity. Meanwhile, a South African franchise, Kota Joe, started eight years after an independent entrepreneur launched a similar concept. Yet, Kota Joe, with adequate funding and scaling strategies, turned over 20 million rand last year compared to the entrepreneur’s modest success. The lesson here? Scaling up matters, and African businesses must think beyond small.
Understanding Big Business
A bank is a collective investment scheme, pooling resources to create opportunities. Similarly, African stockvels—community savings groups—are collective investment systems. Yet, their growth often remains localized. For instance, one stockvel in the Eastern Cape pooled over 300,000 rand last year. While impressive, it pales in comparison to institutions like Absa Bank, which turned over 4.6 billion rand annually. The difference? Scale and infrastructure.
Our traditional models, like stockvels, prove that our systems can generate wealth. But we must evolve these models into scalable, impactful enterprises. It’s not enough to start a business. We need to think big—to own the production lines, the transport infrastructure, the retail spaces, and even the financial systems that sustain them.
Unlocking Entrepreneurial Growth
To truly transform, we must address the deeper issue: the lifecycle of entrepreneurship. Globally, entrepreneurs begin as startups, but the success of their journeys depends on ecosystems that support growth. In the U.S. and Asia, venture capital funds provide patient money—capital that allows businesses to innovate and grow without immediate pressure to repay. It’s why companies like Xiaomi, a Chinese mobile giant, became the third-largest smartphone company in just five years.
In Africa, many entrepreneurs stagnate as survivalists—barely earning enough to cover their monthly expenses. Others plateau at the “success” stage, running businesses that depend entirely on their personal involvement. The goal should be growth: building businesses that can scale and create generational wealth.
Six Essentials for Success
Entrepreneurs need six fundamental elements to thrive:
- Infrastructure: Seamless transportation and communication networks to connect markets.
- Capital: Accessible, patient funding that supports innovation without immediate repayment.
- Markets: Opportunities to sell products and services on local, regional, and global stages.
- Administration: Strong systems for managing operations and scaling effectively.
- People: Retaining Africa’s top talent to build businesses on the continent rather than abroad.
- Vision: A philosophy of building for impact, not just profit.
Changing the Narrative
Many entrepreneurs build businesses to fund lifestyles rather than create legacy or impact. This must change. Let us learn from other cultures, like the Indian community, where each generation builds on the foundation laid by the previous one. Legacy businesses create lasting value, transcending individual lifetimes.
Building for the Right Reasons
Why do we build businesses? To live well, to leave something for our children, to sell, or to change the world. The latter is where true transformation lies. Companies like Google and Apple exist to push boundaries, shaping the world in ways that transcend their products. African entrepreneurs must embrace this mindset—to create businesses with philosophies that inspire and disrupt.
The Way Forward
To Africa and the world, the message is clear: The time for small thinking is over. Let’s build businesses that challenge norms, scale rapidly, and transform economies. Let’s invest in infrastructure, foster innovation, and nurture a culture of building for impact. Let’s reshape our continent’s narrative from one of potential to one of unparalleled achievement.
The question is not whether we can do it but when we will start. The time is now.
source: Vusi
