JIM Clifton, chairman of the globally renowned polling and analytics firm, Gallup, emphasised the critical importance of nurturing entrepreneurial talents in Africa to stimulate economic growth and create job opportunities, during his keynote address at the 7th annual Babacar Ndiaye lecture on October 14.
The lecture, held in Marrakech, Morocco, under the theme The New World Order and the Future of Entrepreneurship in Africa, was organised by the Africa Export-Import Bank (Afreximbank) in honour of its founder, Dr. Babacar Ndiaye. Notably, this marked the first time the lecture series took place in Africa, coinciding with the IMF/Annual Meetings on African soil since 1973.
Challenges in global trade and the ‘golden age of entrepreneurship’
In his welcome remarks, Benedict Oramah, President and Chairman of the Board of Afreximbank, highlighted the shifting landscape of global trade. Oramah discussed the slowdown of globalisation at a time when Africa could potentially benefit from rising wages in China. He pointed out the substantial growth in global trade, driven by factors such as the emergence of the World Trade Organisation and China’s opening-up, which saw global trade increase from $2 trillion in the year 2000 to $24 trillion by 2022. However, the unequal distribution of benefits from globalization led to a backlash, with anti-globalisation sentiments emerging in Western economies, resulting from the discontentment of displaced ‘Blue Collar’ workers.
Oramah noted that these changes signalled the end of what he referred to as the ‘golden age of entrepreneurship.’ Factors such as a reversal in foreign direct investment flows, restrictions on technology transfers, re-emerging trade barriers, and trade disputes between major economies have made building businesses in the developing world riskier and more challenging. This new environment presents a significant challenge to Africa, necessitating the continent’s preparation for this era of transformation.
The role of entrepreneurship and innovation
Jim Clifton highlighted a pressing challenge in today’s world where economies are not growing as they once did. While many countries are striving to boost growth through innovation,
Clifton argued that focusing on entrepreneurship is a more effective approach. He stressed that innovation only becomes valuable when customers are willing to pay for it. He underscored the importance of distinguishing between academic talent and the skills required for entrepreneurship, as the latter demands a unique set of capabilities.
Clifton underlined that to achieve a global economy growth rate of 4.5 percent and reach $300 trillion, understanding the distinct roles of innovation and entrepreneurship is crucial. He compared innovation to the ‘cart’ and entrepreneurship to the ‘horse,’ emphasising the need to prioritise the development of entrepreneurial skills. Clifton suggested that Africa should identify and support individuals with the potential to build significant companies, citing the abundance of talent on the continent.
African entrepreneurship and economic growth
In closing remarks, Hippolyte Fofack, chief economist of Afreximbank, underscored the indispensable role that entrepreneurs play in driving economic growth. He explained that while Africa possesses abundant labour and natural resources, it requires more capital and entrepreneurship to create a complete quartet necessary for production.
Fofack stressed that entrepreneurship is not merely a choice in Africa but a necessity, given the region’s low employment levels. He emphasised the need for entrepreneurial governments to facilitate and coordinate actions to foster entrepreneurship effectively.
Fofack celebrated Afreximbank’s role in supporting entrepreneurship across Africa through various initiatives and subsidiaries, including the Fund for Export Development in Africa, Creative Africa Nexus, and the African Medical Centre of Excellence, among others.
Afreximbank has hosted the Babacar Ndiaye Lecture annually since 2017 in honour of Dr. Babacar Ndiaye, the fifth President of the African Development Bank. Dr. Ndiaye’s transformative leadership had a profound impact on the African Development Bank and was instrumental in establishing several enduring pan-African institutions, including Afreximbank, Shelter Afrique, and the African Business Roundtable.
