Capitalism is defined as an economic and political system in which a country’s trade and industry are controlled by private owners rather than the state. It is “a way of organizing an economy so that the things that are used to manufacture and transport products like land, oil, factories, ships, etc. belong to people and businesses rather than government.”
The synonyms for capitalism are private enterprise, free enterprise, privatized industries, laissez faire, private property.
African capitalism appears to be the African version of capitalism, but it is not. According to Tony Elumelu Foundation proponent and founder Tony Elumelu, African capitalism is the middle ground between business and philanthropy. The basic idea behind the concept is that entrepreneurs and society are both necessary and possible in order to be successful.
African capitalism has received rave reviews in international publications such as the Financial Times, Fortune, and the Economist. It has also been the subject of discussions at several international conferences such as the Oxford African Conference organized by Oxford University in London, the Africa CEO Forum in Germany in 2014 and the United States-Africa Summit, which was hosted by President Barack Obama in Washington was hosted in 2014.
An African business news website, Ventures Africa, reportedly referred to the US president as “Obama the African capitalist” after he launched “Power Africa” to promote access to power in Ethiopia, Ghana, Kenya US dollars had promised. Liberia, Nigeria and Tanzania. In a keynote address at the 2014 Global Entrepreneurship Summit, US Vice President Joe Biden praised the importance of creating a complete climate in which innovation and ideas flourish.
The capital market is the foundation of economic development worldwide. The slow economic growth and development in Africa have been associated with the burgeoning and slow growth of capital markets.
In highlighting the importance of the capital market in Africa, the International Finance Corporation, the private branch of the World Bank found that Africa could not adequately meet its enormous development finance and investment needs with existing funding sources. The infrastructure funding gap alone is estimated at $ 310 billion per year. The challenges associated with developing efficient capital markets in sub-Saharan Africa are enormous and therefore require financial intervention and technical assistance in several areas. The capital market distributes capital optimally, catalyzes industrial growth more quickly and, among other things, helps national economies achieve integrative growth.
African entrepreneurs need to look more closely at the capital market for more stable and flexible funding options, and list their companies on the stock exchange to also cultivate the culture of best practices required for sustainable business growth. Most of the best companies in the world are listed on the stock exchange. Aspiring entrepreneurs on TEEP’s account can take on the world and blossom into giant multinational corporations if they adopt the philosophy of starting locally and thinking globally. African capitalism and a capital market mentality can be the leverage or the magical pollyana that Africa needs to achieve quantitative and faster economic development.
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