The sad story of the father on Addis Meeraf


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The sad story of the father on Addis Meeraf. One top-ranking country on that list, which includes some of the world’s wealthiest and most complex economies, is Singapore. Recently, companies based in the city-state have pursued major growth opportunities across myriad sectors and industries in Africa, highlighting the continent’s entrepreneurship deficit. The Tolaram Group, for example, created the instant noodle market in Nigeria, producing 4.5 billion packets annually and generating almost USD 1 billion in annual revenue.

 

Compared to more diversified and higher-ranking countries like Singapore, where tight labor markets have pushed unemployment to natural rates, a shortage of industrial entrepreneurs may be doubly costly for Africa, where persistent widespread poverty and high unemployment fuel insecurity and migration pressures. For example, the unemployment rate is at Great Depression-era levels – above 30Pct in two of the continent’s largest economies, Nigeria and South Africa. In other countries, economic informality – think of street vendors hawking imported toothpicks, candles, cell phones, and batteries – has become a form of disguised unemployment.

 

An increase in entrepreneurship on the continent would generate wealth more sustainably, expand employment, and reduce migration flows. In many African countries, industrial entrepreneurs, in particular, could help diversify sources of growth, improve the current account balance, and broaden the tax base. This, in turn, would expand countries’ fiscal space, improve debt sustainability, and gradually ease the constraints associated with capital scarcity.

 

Moreover, when the rules of origin for the African Continental Free Trade Area (AfCFTA) are finalized, they will serve as an “industrialization passport” enabling made-in-Africa goods to circulate duty-free. This would provide local entrepreneurs with a much-needed boost to operationalize continental trade integration and enhance Africa’s economic dynamism.

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