Africa’s battle with poverty and unemployment is not due to a lack of potential. The continent is rich in resources, both natural and human, yet it continues to lag in creating a solid base for jobs and businesses. One of the primary reasons for this is a failure to shift attitudes toward economic self-reliance. To move forward, we must make drastic changes in how we perceive foreign ownership, local entrepreneurship, and our consumption habits.
Foreign Ownership vs. African Business Empowerment
The first mindset shift is recognizing that the disproportionate ownership of businesses by foreigners or a small African elite stifles broader economic growth. For Africa to create jobs and end poverty, the business explosion must be driven by African-owned, managed, and financed enterprises. We must stop accepting that foreigners dominate the best businesses and hold the most lucrative jobs.
In countries like Kenya, Nigeria, and South Africa, key industries, including telecommunications, agriculture, and energy, are primarily controlled by foreign multinationals. While these companies bring in foreign direct investment, they often repatriate their profits, limiting the circulation of wealth within the continent. For real change to occur, African businesses must rise to dominate these sectors and keep profits on the continent.
The Role of Ordinary Africans
If we genuinely want to eradicate poverty, it is not just governments or elites who need to act—every ordinary African has a role to play. The fight against poverty has always been driven by ordinary citizens in countries across the world, from Asia to Europe. The same must happen in Africa.
This begins by supporting local businesses. When enough of us consciously choose to buy African-made products and services, we create a demand that fuels business growth. This could trigger a massive job explosion, improving the lives of millions overnight. For example, small consumer choices—like purchasing locally produced clothes instead of imported ones—can generate significant economic ripples.
Why We’re Stuck in Poverty: Our Role in Inaction
Poverty in Africa persists because, consciously or unconsciously, we have cooperated with it. Western and Asian business interests benefit from our inaction. By relying on foreign goods and investments, we allow these external entities to grow while our own economies suffer.
A key step to reversing this is to stop automatically assuming that foreign-made products are superior to African ones. Why are imported goods—from beverages to textiles to technology—considered better when we can produce these items locally? In many cases, the raw materials for these products come from Africa in the first place, only to be processed abroad and sold back to us at a markup. For instance, Africa is a leading exporter of coffee beans, yet imported blended coffee dominates the African market. Instead of enriching foreign businesses, we should be investing in African coffee brands.
Supporting African-Made Products
We must start shopping for African-made products. Whether it’s shoes, clothes, beverages, or electronics, choosing locally produced goods will create jobs, boost income, and reduce poverty. The widespread importation of Chinese products, from textiles to household goods, has flooded African markets, creating dependency on foreign economies. As of 2023, China’s trade with Africa reached $282 billion, with Africa exporting mainly raw materials and importing manufactured goods. This trade imbalance hinders Africa’s growth potential.
If every African demanded locally made products, the continent could witness a surge in businesses, jobs, and improved living standards. Supporting local businesses can have an immediate impact, creating a multiplier effect that could transform economies almost overnight.
Combatting Counterfeit Goods
One of the greatest threats to local production is the importation of counterfeit goods. These items may be cheap but come at the cost of lost jobs and stagnating industries. In 2022, the counterfeit market in Africa was estimated at $200 billion, undermining local manufacturing. The rise in counterfeits from regions like Asia not only robs legitimate businesses of revenue but also worsens poverty.
Buying African-made products, even if they cost slightly more, will help build a sustainable economy that lifts all citizens, especially the poorest. Unlike foreign businesses that exploit cheap labor, African businesses that thrive will pay fair wages, ensuring that wealth is more equitably distributed.
Investment: The Key to Building African Businesses
Another crucial shift in attitude is recognizing the power of local investment. Africa’s economic policies are often focused on attracting foreign investment, yet this reliance can stunt long-term development. African banks, financial institutions, and investors must take the lead in financing local businesses. The mobile phone market provides a prime example of African economic power. Africa is now the fastest-growing market for cellphones globally, proving that when Africans are empowered, they can transform industries.
The African Diaspora also holds immense potential. In 2022, remittances to Africa totaled $53 billion, much of which went toward household consumption. However, if even a small fraction of these funds were directed toward local business investments, the continent could see unprecedented economic growth. Many members of the African Diaspora have significant investments abroad, but it’s time to shift focus toward investing in African businesses.
The shifts in attitude required to stop exporting jobs and end poverty are simple but profound. If we, as ordinary Africans, choose to support our businesses, buy our products, and invest in our economies, we can create a job explosion that will improve our living standards.
Africans must stop depending on foreign countries to solve our problems. Instead, we must recognize that the solution lies in our hands—by changing our consumption habits, investing locally, and empowering African businesses. Once we prove that we can build strong industries on our own, foreign investors will follow, but by then, we may not even need them.
It is time to act, and with collective effort, Africa’s economic renaissance could begin now.
