Association for Free Research and International Cooperation

Government policies hampers entrepreneurship growth in Africa

Young graduates in Africa have woken up to the fact that governments cannot provide jobs for everyone in the country. Hence, most of them have found it useful to get engaged in mostly small scale activities for their livelihoods. While most consider this as the surest means to be financially independent, the very few who are passionate consider this a means to help drive the economy and contribute to economic growth.

It is very common in recent times for hear the word entrepreneurship in most youth gatherings all across the continent. Generally, Entrepreneurship is the act of conceiving, creating and managing a business. Hence, in order to drive the economy, most countries have now turned to empowering the youth and providing them necessary skills and knowledge to be self-reliant. Several international organisations have also been quick to provide funding to some of these initiatives.

Motivated by the government’s inability to provide sufficient jobs, several grassroots startups are now taking risks to run small scale businesses. Recent reports indicate that the entrepreneurship level in Africa is good and will continue to hike in the years ahead because the continent is evolving with booming economies.

A report published in 2014 indicated that Sub Sahara Africa has the highest number of persons involved in early stage entrepreneurship activities and Zambia and Nigeria were leading the ranking. With 39% for both countries. The ranking was closely followed by Ecuador and Malawi while Ghana appeared the fourth position.

However, with the high number of startups, the continent can boost of very few which are sustainable and can grow up to provide employment to the population, as many of them have had to close down few years before the business gets to maturity.

Despite the fact that this appears to be a vibrant sector with greater prospects in the future, a lot has to be done if the sector has to significantly contribute to growth and development.


Government policies are one of the major factors which greatly hinders the development of small business. For instance in countries like Cameroon, the procedures to create a business is in itself a discouraging factor, without wanting to dwell much on the exorbitant taxes levied by the government. In addition, the business environment created by the government is less favourable which has made it difficult for investors to want to invest money into such economy.

The government has to step up to provide an enabling environment such as a free financial funding policies, low-cost loan, stable political condition, higher education facilities, adequate infrastructural facilities for these startups to flourish.

ARFIC Editorial Article.

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