Building Entrepreneurial Ecosystems in Sub-Saharan Africa

Book excerpt: Despite several economic difficulties that have been depicted in the popular press and in policy making circles, sub-Saharan Africa presents today undeniable business opportunities that have not been fully exploited. Several countries, such as Angola, Ghana, Kenya, and South Africa have seen their economies grow at faster rates than developed economies in the last decade. According to Chironga, Leke, Lund, and Van Wamelen (2011) and the McKinsey Global Institute (2010), Africans spent $860 billion on goods and services in 2008, more than the $835 billion that Indians spent, and more than the $821 billion of consumer expenditures in Russia. If the sub-Saharan Africa maintains its growth trajectory, consumers will spend $1.4 trillion worth of goods and services in 2020, which will be a little less than India's projected $1.7 trillion but more than Russia's $960 billion. As these economies progress, opportunities are opening in sectors, such as retailing, telecommunications, banking, infrastructure-related industries, resource-related businesses, healthcare, education, and the agricultural value chain (Chironga et al., 2011). To sustain this growth potential, Africa needs to develop strategies that foster homegrown entrepreneurs.