Robert Litan, director of research at Kauffman Foundation – a firm that specializes in promoting innovation in America said, “Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less”. “That is about 40 million jobs. That means the established firms created no new net jobs during that period.”
Due to globalization, every existing job or position has either been taken or outsourced. In these times, the necessity of start-ups cannot be overstated. In Africa, it means we need the private sector to step up. We need the creative talents that have fled the continent to return with their acquired expertise.
This does not excuse the government of its responsibilities. In a developing society, they are the premier source for generating employment. However, the reliance on them for innovation is misplaced. We saw with the GSM that all the market needs is an enabling environment; expediency and profits handle the rest. In Nigeria, the government simply granted licenses, in a couple of years, business transactions were made more efficient, and thousands of jobs were created.
Due to the continental lack of infrastructure, there is a huge avenue for government induced job creation, both in building the amenities and in maintaining them. But soon enough that number will stagnate. I am more interested in what happens next.
For every four blacks on the African continent, one is a Nigerian. This means (like it or not), the proportion of able bodied, adequately educated, aptly funded individuals possible of sustaining job-creating start-ups will favor that country. I say this because of the shenanigans pulled in Ghana last year. Due to the electricity shortages in Nigeria, Nigerian business flocked there in droves and helped spur the economy. International organizations soon followed, and suddenly Nigerian licenses were being revoked.
The difficulty faced by non-Kenyan Africans in starting and sustaining a business in Kenya is ridiculous, yet Indians own the majority of industries – land, manufacturing, and retail. I would have no problem with this but the profits are sent to India and the hired labors are imported from India – none of this is good news for our continent.
The point of these illustrations is to state that African countries need to be more business friendly towards fellow Africans. It is imperative. Mo Ibrahim, the wealthy Sudanese businessman has been often quoted as saying individually African countries cannot be competitive on their own.
War between two nations usually stems because of money, because people care about their money. We need Africans to have financial stakes in the continent so they would care about what is happening in it.
Finally, I am not a protectionist by any means, and I think Ethiopia is taking it a bit far (you can’t buy Kelloggs in the supermarket), but I really think the rest of the continent like them need to start contemplating import embargoes. We should take the China route; our markets are young and should be protected. Inter-African trade should be developed and protected. The borders should be opened for people, goods, and businesses. Little known fact, Canada is the only country that can service all their current needs without imports. Perhaps it is why they never war.


Good post Koye. I agree with you, the private sector has a large role to play in developing our countries. and having emerging markets, there is so much businness potential, so many unexplored market sectors. About embargos, I am not enthusiastic about command economies but Mixed economies I support. Governments should take initiatives to protect young industries from foreign competition.
‘ War between two nations usually stems because of money, because people care about their money. We need Africans to have financial stakes in the continent so they would care about what is happening in it.’ I like that. Never thought of it that way
Good post Koye. I agree with you, the private sector has a large role to play in developing our countries. and having emerging markets, there is so much businness potential, so many unexplored market sectors. About, embargos, I am not enthusiastic about command economies but Mixed economies I support. Governments should take initiatives to protect young industries from foreign competition.
‘War between two nations usually stems because of money, because people care about their money. We need Africans to have financial stakes in the continent so they would care about what is happening in it.’ I like that, never saw it from this side.