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countries, classifies half of the 44 sub-
Saharan African countries measured
as authoritarian regimes, 14 as hybrid
regimes, seven as flawed democracies, and
only one, Mauritius, as a full democracy.
These results paint a clear picture of
creeping authoritarianism and democratic
backsliding, which Africa cannot afford at
this stage in its development.
Against this backdrop, voting across
the continent in 2019 will take place
amid growing discontent among the
youth — those who are under 25 years
old and represent 60% of the continent’s
1.25 billion people — over poor service
delivery and the lack of opportunities
in countries long dominated by ageing
despots. According to Brookings, the age
gap between the region’s population and
its leaders is 42 years, compared to only
12 years for advanced nations within the
Organisation for Economic Co-operation
and Development (OECD).
A disconnect between old leaders and
institutions, and their rapidly growing
www.africanmining.co.za
youthful populations, presents a
fundamental challenge, particularly in the
era of Industry 4.0, where demands and
requirements are changing, and ageing
leaders are unable to take any meaningful
action to address the issues most relevant to
modern lives.
Rising populism is a serious threat. Fragile
institutions, poor governance and service
delivery, not to mention exclusionary
politics, have made Africa particularly
vulnerable to a populist onslaught at the cost
of liberal democracy. This would be a serious
setback for progress on the continent.
What does this mean for those doing
business in Africa?
Politics has an undeniable impact on
business and economic confidence in
Africa, as it does in most other parts of the
world. In the context of Africa, these are
inextricably intertwined and are the main
drivers and shapers of context and society.
Countless examples and empirical data
show that strong political institutions are
paramount to economic success.
Political risk is an impediment to business,
undermining confidence and accruing direct
costs over an extended period. What is more,
the role of business in establishing a stable
environment with sustainable development
across the continent, is crucial. This has
emerged as a pivotal part of business
strategy and operations, and is defining a
new breed of African firms that are globally
competitive and locally impactful.
The rise of African MNCs, with a deeper
purpose, bodes well for the future of the
continent. While governments need to
work harder to provide an environment
fit for business and attractive to investors,
it will be home-grown African firms
that have emerged despite high risk and
political uncertainty, with a deep contextual
understanding and appreciation, that will
be the true drivers of change and progress
across the continent.
Professor Lyal White is senior director of the
Johannesburg Business School (JBS) at the
University of Johannesburg, and Liezl Rees is head
of the Centre for African Business (CAB) at JBS. b
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