Event Review: Shaping Africa's future growth with Fred Swaniker
Two weeks ago, a friend and reader of my newsletter invited me for an online event: Shaping Africa’s future growth, with the famous Fred Swaniker, Founder and CEO of the African Leadership Academy. Tenbite Ermias, the MD and Head of Africa at CDC Group was also on the panel.
I found it very insightful, and today I want to share a few of the points I took away.
Notes from Fred
Africa at the end of the century would be 40% of the entire world’s population. By 2035 Africa would have the largest workforce in the world, greater than China or India.
4 things that make for creating change – Govt policies (create an enabling environment and don’t stifle business and investment), We need to reimagine skill development (Universities are knowledge enterprises not skills enterprises, need better education to employment linkages), Africa should focus on comparative advantage (Agriculture, Creative industry, Natural resource conservation/wildlife and tourism, and Entrepreneurship)
Entrepreneurship is the biggest engine for job creation. Young entrepreneurs hire other young people. For example: At the African Leadership Academy(ALA) young entrepreneurs have created an average of 16jobs,each. In the last 12months, ALA graduates have created 10k jobs
Entrepreneurial leadership is a way of thinking. Entrepreneurs are people who solve complex challenges in creative ways with limited resources.
Africa has had different generations of leaders. Gen. 1 (brought independence), Gen. 2 (brought chaos), Gen. 3 -current generation - (brought stability), Gen. 4 – next generation – (Would aim to create prosperity and build institutions)
Technology is one of the greatest forces for societal change. Europe went from poverty to where they are today over 1000yrs. It took USA (300yrs), Japan(100yrs), South Korea/Singapore/Malaysia(60yrs), China(30yrs), and Dubai(15yrs) respectively. Each society is borrowing the technology and ideas from the previous society that developed allowing them to leapfrog and do things faster. Africa, leapfrogged in telecoms and went straight to mobile telephone. In 20yrs there are 800m mobile users in Africa.
After Covid, there would be a period of “Great Re-hiring”. The pandemic has opened up markets for young Africans all over the world, catalysed by the internet. An Engineer can stay in Rwanda and work for Siemens in Germany remotely, so can a designer in Kenya work for Zara in Spain. This is a huge opportunity to export talent without the brain drain.
What does Africa need? Africa needs unconventional leadership and new practices (vs best practices from other countries)
Notes by Tenbite
CDC Group is currently focused on investment in digital infrastructure as they drive connectivity and financial inclusions
20% of all businesses that need telecoms services on the continent get it, while 80% do not. London has 3X cloud computing capacity of the entire continent of Africa. In comparison, Europe has a 90% telecom penetration rate
CDC Group in 2018 invested $180m in Liquid Telecom, to cover the entire continent with fibre-optic cables and build data centres. Recently CDC financed a consortium including Vodafone/Safaricom, to obtain the first external telecoms licence for Ethiopia. Over the next 15yrs of licence period, 1m jobs are estimated to be created providing access for over 20m people for to ehealth, education and agriculture support service.
Opportunities in Africa: As Africa’s middle class and rate of urbanisation is increasing, there would be a need for more services. Over 600m will move into cities. Services needed: Sanitation, Urban planning, Healthcare, Food, and Housing.
China: 98% of all firms are small companies (with 350 employees or less). They contribute 60% of total GDP, 50% tax income, 75% of job creation, and 68% of exports. Africa needs to focus on creating and funding more small firms
Questions by the Audience
Question 1: Do you see marked difference between leadership by men or women? – Fred
Yes. Research has shown that men have higher confidence relative to their competence. Women have a lower confidence related to their competence. This means that men take more risks and believe they can achieve anything, independent of their level of competence. Women take less risks.
For example, when applying for jobs: Men apply for a job even though they meet 60% qualified for the job. Women on the other hand wait till they are over 100% qualified for the job.
Men need to learn from women, and women should learn from men. Both parties should complement each other: more diversity in leadership.
Question 2: What role can African Diaspora play? – Tembite
We need to go beyond remittance. The diaspora can contribute through
- Mentorship
- Finding ways to make remittance payment ‘work harder’ and have greater impact
- Moving back to Africa
Conclusion
Hope you found this informative and relevant.
What do you think about these points? is there anyone in particular you relate to? Kindly leave a comment below.
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