Entrepreneurship and capitalism are the tried and true driving forces behind sustainable economic development. African countries cannot hope to build an economy around natural resources or aid from other countries; these can be supplemental factors but never the backbone for economic prosperity.
Big business, industry, champion companies; whatever you want to call it, it is the driving force behind the growth of countries’ economies. As the global economy booms, we have example after example of stand out companies from successful countries all across the world.
Google is a great example of a champion company known around the world. It was born out of an ecosystem in the United States where venture capitalism supports and drives entrepreneurship that has the chance to reshape the landscape of not only the country, but the world..
The sogo sosha of Japan and the chaebols of South Korea are examples of powerful champion companies that created bountiful opportunities for their respective nations to become global economic powerhouses.
Through deliberate planning, their companies like the English and Dutch merchant companies boosted their nation’s economy in search of business opportunities abroad. Similarly, the Asian Tigers followed suit and created champion companies of their own.
African countries can follow in the footsteps of Asian Tigers by creating an environment that allows for the development of champion companies. It’s a simple strategy, yet one that will bring prosperity to every nation that properly executes it.
If something hasn’t worked for fifty years, why continue to try, try again? For decades, African countries have tried the same things without success. It is crucial for African leaders, now more than ever, to listen to the ideas that are out there to bring their countries to the forefront of the global economy.
The people of African nations are the most important resources for the continent, but the high value of African currencies and the high cost of living make it tough for the people to prosper.
What do millions of dollars worth of watches found in Brazil, land reform in South Africa, and AGOA all have in common? They are all topics of this month’s episode of the Unleash Africa podcast.
African leaders have failed their people through a lack of foresight and strategic thinking. But, if those leaders can understand how they can bring their nations into the race to the top of economic prosperity, their people will benefit.