Jan/Feb 19 - ChannelVision Magazine

large companies one would expect if it were on a par with peer regions. Afri- ca’s big companies also are smaller, on average, than those in other emerging economies, say McKinsey analysts, and excluding South Africa, the total rev- enue pool of large companies in Africa is about a third of what it could be. McKinsey & Company analysts also are quick to point out the important role played by smaller and medium- sized firms. “If Africa is to build its rightful num- ber of large companies, then many of its younger firms will need to think big,” said Leke. “Indeed, smaller and medium-size enterprises (SMEs) have a critical role to play in accelerating economic development, serving the unmet needs of African markets, and especially creating jobs.” The World Bank, for example, esti- mates that small and mid-sized enterpris- es are responsible for 77 percent of all jobs in Africa and as much as half of GDP in some countries. Mid-sized compa- nies in particular are major job creators, shows McKinsey research, as firms with between 50 and 200 employees create jobs at twice the pace of both large cor- porations and small businesses. Of course, “Not every company will succeed in translating the potential we’ve just described into growth that is rapid, consistent and profitable,” warned the research firm. “In a marketplace that is both complex and increasingly com- petitive, there are huge differences in performance between the most success- ful companies and the rest.” Companies with exposure to high- growth cities, countries and regions improve their odds, advised Leke, as the income per capita of Africa’s cities is more than double the continental av- erage, making them attractive markets for many businesses. Much the same goes for companies that ride strong industry trends, such as rapid adoption of mobile and digital technology. McKin- sey also suggests companies consider approaches that unleash Africa’s talent, including nurturing vocational and managerial skills at scale and fostering a new kind of business leader for the African century ahead. Essentially, “a plan for doing good while doing well,” will be better embraced, said Leke. Africa’s current population is projected to double during the next 30 years, making Africa an exception in a world of slowing population growth. At the same time, it will soon be the fastest-urbanizing region in the world, already hosting as many cities with more than one million inhabitants as North America does, and more than 80 percent of its population growth during the next two decades will occur in cities. It all points to huge economic shifts and rapid modernization that are cur- rently under way. And while not pre- tending that Africa is an easy place to do business – given its geographic complexity, infrastructure gaps and rel- ative economic and political volatility – Leke likens the opportunities in African in the 21st century to those in China near the end of the 20th century. o international Agents etcarrier ™ It Was WorthThe Wait nCloud Connect… All The UCaaS Features You Asked For… And More 855.ncloud4 • connect@netcarrier.com NetCarrier Provides Enhanced Cloud Solutions For Businesses Throughout The US January - February, 2019 | Channel Vision 47