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Cape Town - Entrepreneurship could be part of the answer to deal with the waning of the commodity boom in Africa, according to Ken Olisa, founder and chair of Restoration Partners and non-executive director of Thomson Reuters.
“The commodity boom is over and there is a high willingness for entrepreneurship in Africa. A mindset change is critical to deal with entrepreneurs and external parties have to understand the entrepreneurship story in Africa,” Olisa said at the 4th Trading Africa Summit hosted by Thomson Reuters and Barclays Africa in Cape Town this week.
He spoke about creating wealth in the continent and pointed out that entrepreneurs in Africa should focus on the user interface to create wealth.
"What will fill the gap in Africa left by the commodity boom being over? In my view entrepreneurs - who create jobs and can bring an economic impact during the long cyclical trend commodities follow - can be part of the answer to the consequences of the dip in the commodities boom," he told Fin24.
He pointed out that Africa scores highly for the propensity to be entrepreneurs in the annual Global Entrepreneurship Monitor (GEM).
"In my experience entrepreneurs have a dream, whether one is an entrepreneur out of necessity or simply wanting to be your own boss and have the bug of doing your own thing," explained Olisa.
"All it will take is a few 'Microsofts' in Africa and one can solve the massive dip of commodities."
READ: Africa continent of the young and the new
(Source: Thomson Reuters)
Barriers existing
A key barrier for entrepreneurs in Africa is the lack of available finance, in Olisa's view.
"My message to the financial elite in Africa is to take note that they have the opportunity to get involved in financing entrepreneurs who are ready to scale up their businesses," he explained.
"Africa can leapfrog the first world in many ways, but this would require a different type of finance."
This will also increase the number of jobs created.
It is, however, important in Olisa's view for institutions to understand the psyche of entrepreneurs. They follow a cycle of having an idea, doing research about it, making a plan, finding resources, implementing the plan, making changes to the plan if needed and implementing the new plan.
"If one understands the dream and cycle of entrepreneurship, proper support can be given to an entrepreneur," said Olisa.
Labour law
In answer to a question regarding the role of labour law in relation to entrepreneurship, Olisa said, whether it is labour laws or tax matters, entrepreneurs regards these merely as bumps in the road to achieving their dreams.
READ: Growing concern about sustainable growth in Africa
(Source: Thomson Reuters)
