Creating an enabling environment for Africa's entrepreneurs

The World Bank's country director for the Maghreb, Malta, Middle East and North Africa, Marie-Francois, Marie Nellie, emphasized the importance of creating an enabling environment for startups to access seed finance and large markets in Africa. During a discussion with CNBC Africa's Kenneth Igbomor at the Tony Elumelu Foundation Entrepreneurship Forum, Marie Nellie highlighted the potential of the African youth in driving innovation and economic growth on the continent. She noted that the informal sector plays a crucial role in many African countries, with a significant portion of enterprises being classified as small or very small. In countries like Morocco, the majority of enterprises fall under the category of very small, showcasing the importance of supporting small and medium-sized enterprises (SMEs) to drive job creation. With Africa's youthful population, the focus on SMEs becomes even more paramount, as they are identified as the key to generating employment opportunities across the continent. According to Marie Nellie, the energy and optimism of the youth make them ideal candidates for entrepreneurship, where they can develop solutions to address local challenges and contribute to economic development. She shared examples of innovative solutions developed by young entrepreneurs, such as a medical records retrieval system created by a doctor from Benin and a healthcare app launched in Tunisia to improve access to social security services. These success stories underscore the potential of African youth in driving impactful change through entrepreneurship. Marie Nellie also highlighted the role of organizations like the Tony Elumelu Foundation in providing an enabling environment for aspiring entrepreneurs. By offering seed financing and access to larger markets, foundations like these play a crucial role in supporting the growth of startups and scaling their solutions to benefit a wider audience. Additionally, she mentioned the efforts of a Moroccan bank that received a substantial number of FinTech solutions from startups across the continent, showcasing the vast potential for innovation and collaboration in Africa's entrepreneurial ecosystem. The support from global organizations and African leaders has been instrumental in advancing entrepreneurship on the continent. Development finance institutions like the World Bank have recognized the unique financing needs of early-stage startups and have started partnering with governments to establish investment funds tailored to support SMEs. Marie Nellie acknowledged the importance of providing equity financing at the seed stage to enable young entrepreneurs to test their ideas and establish sustainable businesses. While traditional banks may not always be the source of funding for startups due to regulatory constraints, collaborative efforts between governments, private sector entities, and international organizations can create a conducive environment for entrepreneurship to thrive in Africa. By fostering mentorship, reducing risk for SMEs, and facilitating access to financing, institutions like the World Bank play a critical role in nurturing the next generation of African entrepreneurs. The collective efforts of various stakeholders are essential in unlocking the full potential of Africa's entrepreneurs and driving sustainable economic growth across the continent.