How COVID-19 & AfCFTA can spur new African entrepreneurs
The World Bank says the highest rates of entrepreneurship in the world are in Sub-Saharan Africa. The Tony Elumelu Foundation has been tapping into the potential of Africa's young entrepreneurs for over a decade and the CEO, Ifeyinwa Ugochukwu joins CNBC Africa to discuss how the pandemic and the continental trade pact can spur new entrepreneurs in Africa.
Mon, 11 Jan 2021 11:53:39 GMT
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AI Generated Summary
- The COVID-19 pandemic highlighted the critical role of entrepreneurship in Africa, showcasing the innovative and adaptive nature of African entrepreneurs.
- The Tony Elumelu Foundation is leveraging digital transformation to enhance its support for entrepreneurs, increasing training opportunities and streamlining the selection process.
- The commencement of the African Continental Free Trade Agreement presents a unique opportunity for entrepreneurs to access a larger market and participate in regional supply chains, necessitating infrastructure development and a supportive ecosystem.
The World Bank has identified sub-Saharan Africa as having some of the highest rates of entrepreneurship globally. The Tony Elumelu Foundation has been at the forefront of harnessing the potential of Africa's young entrepreneurs for over a decade. In a recent interview with CNBC Africa, Ifeyinwa Ugochukwu, the CEO of the foundation, discussed how the challenges posed by the COVID-19 pandemic and the opportunities presented by the African Continental Free Trade Agreement (AfCFTA) can serve as catalysts for empowering new entrepreneurs across the continent. The year 2020 was undoubtedly a turbulent time for entrepreneurs worldwide, particularly in Africa. However, amidst the adversity, there were glimpses of hope and resilience. The pandemic shed light on the crucial role of entrepreneurship in Africa, especially in times of crisis. Entrepreneurs swiftly adapted to the challenges by transforming themselves into manufacturers of essential protective equipment like masks and PPE. This demonstrated the innate innovation and creativity of African entrepreneurs. Ugochukwu emphasized the importance of providing these entrepreneurs with the necessary support, including access to training, capital, and a conducive ecosystem to foster economic growth and resilience. The Tony Elumelu Foundation has taken proactive steps to adapt to the changing landscape brought about by the pandemic. By embracing digital transformation, the foundation has streamlined its selection process for entrepreneurs. Through the use of algorithms, applicants can now receive immediate feedback on their acceptance into the program and their training level. Furthermore, the foundation plans to significantly increase the number of entrepreneurs trained, aiming to reach upwards of 10,000 to 20,000 individuals. This upscaling of training efforts is crucial in equipping entrepreneurs with the skills and knowledge needed to navigate the evolving business landscape. In terms of funding, the foundation remains committed to its goal of identifying, training, mentoring, and funding 10,000 entrepreneurs over ten years. The $5,000 non-repayable seed capital provided to selected entrepreneurs has proven instrumental in kickstarting their entrepreneurial journey. With the recent commencement of the AfCFTA on January 1, 2021, African entrepreneurs are presented with a transformative opportunity to access a larger market and tap into regional supply chains. Ugochukwu dispelled the misconception that many businesses supported by the foundation have minimal staff, highlighting that these small and medium enterprises (SMEs) are key job creators in Africa, employing significant numbers of individuals. The AfCFTA represents a historic chance to eliminate the long-standing barriers that have hindered intra-African trade. To fully leverage this agreement, a collaborative effort between governments, the private sector, and entrepreneurs is essential. Infrastructure development, currency harmonization, and the facilitation of cross-border trade are critical steps to ensure that entrepreneurs can capitalize on this momentous opportunity. The Tony Elumelu Foundation is actively engaging entrepreneurs, educating them on the benefits of the AfCFTA, and empowering them to adapt and innovate in preparation for expanded market access. By providing the necessary training, funding, and support, the foundation aims to catalyze a new wave of entrepreneurship that drives economic growth, fosters innovation, and enhances the continent's competitiveness on the global stage.