Koldo Echebarria (Esade): “Africa’s leadership and cooperation for the continent’s development are essential for the global future”

“Africa is undergoing tremendous social and economic upheavals with a growing, young population which, according to current trends, may account for one quarter of the world’s population by 2050. Some of its cities are now amongst the largest in the world and this continent’s potential is extraordinary. However, many great challenges in different areas have yet to be solved in areas such as infrastructures and education, therefore international cooperation and the leadership of Africa for the development of the continent are essential when thinking about the future on a global scale”, said Koldo Echebarria, Esade director general, during his opening speech at the international conference “The Future is Africa” held by Esade Alumni. This online conference brought together experts and business leaders to discuss the future opportunities and threats facing Africa in the spheres of economic development, innovation and entrepreneurship.

The digital economy in Africa

The digital economy could be a driving force for the continent’s economic development. In this respect, Amish Chhagan, founder and director of Afriqinsights, highlighted the role that digital financial services and mobile payments play in financial inclusion: “In Senegal, just six years ago, only 6% of the adult population used mobile payments. This figure is now 32%”, although the number of registered users may not tally with the actual number of users, he said. Banasco Seidu Nuhu, executive director of the Nasco Foundation, emphasised how important it is for governments to combat fraud: “it is essential to reinforce the governance and regulations of the digital economy, and to create favourable economic and political conditions for both investors and entrepreneurs, so that Africa can occupy the place it deserves in the future”, he said. The general manager of Glovo for Sub-Saharan Africa, William Benthall, also said that “Africa’s population growth is an opportunity, but it also comes with challenges. The question is whether the governments on this continent can implement policies to ensure that population growth is accompanied by the creation of qualified employment together with training and the development of digital skills amongst the population.”

Entrepreneurship and innovation

The culture of entrepreneurship is increasingly robust in Africa but still faces considerable barriers. As Chhagan explained, we must distinguish between two groups of entrepreneurs in Africa: “on the one hand registered entrepreneurs and on the other, those in the informal economy who, due to a lack of institutional support, are obliged to be innovative and creative in order to survive”. “The second group is far bigger and more difficult to measure in terms of volume and market size”, he added. Seidu Nuhu also said that “Africa has plenty of opportunities for developing business models and competitive advantages for investors but more ecosystems offering support and a greater access to finance are needed. Literacy is still a problem – not just digital literacy.”  

Benthall mentioned that “entrepreneurs in Africa do not regard informal economy as an obstacle to success but as an opportunity: some of the best enterprises focus on basics, and on places where public infrastructures do not always work very well”, such as, for example, a mobile app that aggregates available ambulances for medical emergency response. Likewise, Sonali Sanghrajka, a consultant at the International Finance Corporation (World Bank Group), explained that “disruptive innovation is very important for Africa,” and emphasised “the creation of entrepreneurial ecosystems in recent years, like Silicon Savannah in Kenya, that seek to close the know-how gap, facilitate access to finance, etc.” Meanwhile, Amanda Dilima, retail manager at V&A Waterfront, was adamant that “entrepreneurs in Africa are bound to succeed because they face unique and really important problems that have yet to be solved on this continent,” and ended by saying that “many people can see Africa’s potential and want to be part of this growth: it’s an exciting place to be.”