BUILDING GENERATIONAL BUSINESSES IS CRITICAL TO AFRICA's GROWTH

As an individual grows up and reflects on the past, one wonders where and how various businesses which had existed in a particular era faded away with no trace and new ones which emerge end up going through the same cycle. In Africa, building of generational businesses is a major challenge due to numerous reasons. It is very difficult to trace and identify African businesses which were very successful in a particular era and are still chalking success. Some which have died off include that of Late Nigerian philanthropist and politician, Moshood Kashimawo

Abiola, he was believed to be one of the wealthiest African with business interests in the airline, media, real estate, fishery, and retail. The story is not different for Joram Kamau, who used to be one of the wealthiest Kenyans several decades ago.

It is a notable fact that Africa's fast-growing population and markets present important opportunities for business in an environment of slowing global growth and investment in business is a major contributor to the GDP of a nation which will in turn affect the nation's economic development as businesses are avenues to aid or solve major challenges in any nation. The African continent is a continent known to be rich in resources and when such resources are tapped and utilized properly, would enhance economic development in a way that will make its businesses competitive with other continents.

As the years unfold, Africans are becoming more innovative in business. A few of them have and are establishing their own businesses hence a gradual growth of entrepreneurs in Africa. In the coming decades, many Africans would be acknowledged for starting businesses, generating jobs and wealth, and capturing growth opportunities.

However, one challenge that plagues African businesses is business sustainability. Businesses hardly survive beyond their founders, as most businesses begin to collapse after the founder retires or dies. As a continent, we need to change our approach to business, envision the future in present decisions and invest in sustainable and generational businesses. Africa needs generational businesses that can continue to exist, thrive and expand as very successful businesses even after the minds that conceived them are dead or there is a transition of leadership. This is one major way to keep the continent at par with the growing economies of other continents.

A few of the generational businesses which Africa can boost are family businesses, some of which are even owned by non-African families these include; the Dantata Organisation which has transitioned leadership to three generations and has grown into a Multi-Million dollar conglomerate with interests in construction, oil exploration, manufacturing, farming, import and export, merchandise and commodity trading; the Ibru Organisation which has made an aggressive investment in agriculture and livestock over the years; Madhvani Group, the largest sugar manufacturer in East Africa which has expanded into other East African markets like Rwanda, Kenya, and Tanzania even after succession; Pick N Play, one of the largest retail chains in Africa, operating in over 1600 locations in over six countries and with more than 90,000 workers.

As a continent, we need to change our approach to business, envision the future in present decisions and invest in sustainable and generational businesses.

MAYUR MADHVANI, MANAGING DIRECTOR OF MADHVANI GROUPS IN EAST AFRICA

To build generational businesses, loopholes have to be sealed to bridge the gap of transitioning. One major challenge for businesses in Africa is its poor structure of transitioning. Many businesses die out after the death of their founder because of poor succession plans. Death is inevitable hence; succession must be considered when establishing any business. The best time to find a successor with the right level of commitment, vision and zeal to lead a business beyond the lifetime of the founder isn't when the founder retires or is on his/her deathbed but should even be considered right from its establishment. Therefore, African businesses must put strong and appropriate structures and principles in place to aid and guide any generational group for continual progress and growth of any business. Businesses with strong structures and systems will not only give knowledge to the young generations, but they can also grow to take over the company by succession. Hence, the young generation will not struggle with finding their foot because they are already part of the business.

Building generational businesses demand investment in the skills of potential youth. Many

African businesses cannot function independently of the founder. Vital business information and records concerning most businesses are housed in the heads of their founders hence the business risk a tragic end if anything happens to the founder. Apart from record-keeping, skills and or knowledge should readily be made available to employees. Requisite learning and training should be given regularly Formal education, short courses, mentorship, coaching, and exposure are critical to the nurturing and grooming of a successor

Another major challenge is the lack of structure and business systems. Business systems are very important because it gives a blueprint of policies and procedures that govern everything from recruitment, employee conduct, finance, and accounting, among other running of the business. One key trait of successful businesses, especially those that have existed through several generations, is the existence of a clear structure and business systems that help the business to operate effectively

Businesses must begin to keep accurate and up-to-date records of their activities, including complete information about operations, finances, transactions, customers, suppliers, employees, and everything else.

The need to correspond with the changing business trends as society continues to evolve is key if the continent must build generational businesses. Another strong feature of businesses that last beyond a generation is their ability to adapt. In a world of constantly changing markets, consumer trends, sociopolitical influences, and outright disruption, adaptation is a key strength of businesses that will survive today and in the future. Changes and trends in both the local and international marketplace will be one of the biggest risks that African entrepreneurs and businesses are likely to face especially with a growing number of foreign businesses and brands increasing their footprint in Africa.

The vision of growing generational businesses such as IBMs, Coca-Colas, Fords, and Nestlés is a possible dream but it will not happen by chance. There is a need to take quick, deliberate and calculated steps to navigate the roadblocks and risks to pave way for the manifestation of this dream.