Africa is currently experiencing unprecedented growth rates. Many countries are growing at rates above 5 percent, and Africa is also home to six of the ten fastest growing economies in the world. All this has fueled the so called 'Africa rising narrative', in which many proclaim that the continent is going to grow at unprecedented rates and lift millions of Africans from poverty. To achieve this growth, many African governments have been on an all out pursuit of the magical foreign investor. However, what has often been forgotten are the small businesses that help to power the continent forward.
There are several kinds of businesses in Africa. There are huge multinational companies that create billions of dollars in wealth. However, this wealth does not create enough jobs, and the wealth created is only concentrated in a few hands, leading to what's known as jobless growth. On the other hand, the micro
businesses are too small and provide only a minimum livelihood to their owners, and often strain their owners. These are the sort of businesses that are usually harassed by the government, and experience stunted growth.
On the other hand, we have the high growth small businesses, which have potential for growth and creating future wealth. It is such growth that enables clean, decent, and rewarding jobs to be created. Nearly two thirds of Africans are employed in the small and medium businesses, and it is time that these businesses were empowered with effective policies so as to create a self sustaining wealth for the continent. Otherwise, the Africa rising narrative will feel hollow.
No comments:
Post a Comment