Low investment strength and legal and regulatory obstacles make Africans the most exposed to external situations.
The administration or large companies find it difficult to absorb the approximately 11 million workers who enter the African labor market each year. In 2050, according to the World Bank, it is expected to go from a population of 1.1 billion to 2.4 billion in Africa, making it increasingly difficult to find an outside workplace. However, according to the latest GEM (Global Entrepreneurship Monitor) report, starting a business is seen as an opportunity rather than a necessity, also in Africa.
With the aim of transforming the African demographic potential into economic opportunities, public authorities, private actors and multilateral partners are rapidly developing new initiatives to restructure entrepreneurship in Africa. Within this area, it should be noted that Africa is also the continent that holds the world record for female entrepreneurship.
In this sense, why is it so difficult for African companies to emerge from an overvaluation of the risk associated with the continent, when in terms of foreign savings, Africa receives in absolute terms five times more funds than at the beginning of the 2000s , registering an annual growth three times higher than that of Europe?
During the Africa Netpreneur Prize (ANPI), Jack Ma, a Chinese entrepreneur, explained to African students that \”The best way to create jobs is to incentivize small businesses\”, based on the principle that risk is still inherent in entrepreneurship.
The pandemic caused the funds sent to Africa to fall by 20%, reaching 445 billion dollars in 2020 compared to 554 billion in 2019. However, both public authorities and private actors and multilateral partners are intensifying initiatives to support the country and facilitate the orientation of part of these funds in the formal economy.
In recent months we have observed events, such as the European MEETAFRICA program, the “Choose Africa” initiative or the new Alliance for Entrepreneurship by French President Emmanuel Macron; facts that indicate that, without a doubt, the Africa of the entrepreneurs is increasing.