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Before You Build Something New, Consider Buying Something Old

  • Many of Africa's wealthiest individuals built their wealth by acquiring traditional industries rather than starting new businesses.
  • Approximately 80% of Africa's billionaires made their wealth in sectors like cement, manufacturing, logistics, retail, mining, oil, and banking, as opposed to technology.
  • Top companies in Africa are primarily dominated by traditional industries such as banks, energy, logistics, mining, and retail, with tech companies being the exception.
  • The majority of Africa's informal sector also relies on traditional businesses like market stalls, small-scale farming, family-run logistics, and local manufacturing.
  • Entrepreneurship Through Acquisition (ETA) is a pragmatic approach where businesses are acquired and then scaled with capital, capacity, and modern management.
  • ETA addresses the economic risk of succession planning by acquiring small-to-medium-sized businesses in industries like manufacturing, logistics, food processing, B2B services, and construction.
  • ETA combines innovation with existing industries to build real balance sheets and compound wealth.
  • The next phase of wealth creation in Africa is seen to come from leveraging traditional economies rather than leapfrogging them.
  • By investing in profitable traditional industries and modernizing them, Africa aims to absorb innovation into existing sectors for sustained growth.

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