Africa: The world’s most important client

The sneaker brand Bathu Footwear just opened up its 30^th store in South Africa. Legends Barbershop has 50 stores as of August 2021 and Drip Footwear now has 18 stores. What do all these brands have in common? The visionaries behind these brands are all younger than 35.

Millennials and Gen Z’s are fast becoming the most entrepreneurial generation. As two generations who grew up in what is known as the internet age, it is easy to see why these generations may be pushing the new Fourth Industrial Revolution.

The World Economic Forum recently announced that by 2050 two in every five children will be born in Africa. Africa’s population is growing vastly, and as a continent, we have the highest Millennial and Gen Z population with 77% of Africa’s population being below the age of 35. With so many young people driving entrepreneurship in Africa, I have to beg the question and ask if Africa is slowly becoming the world’s most important – yet undervalued – client? 

Africa has become such an untapped market with so much potential for entrepreneurship. Big international companies like Amazon, SHEIN and Alibaba are becoming extremely popular in Africa as they cater to the Millennial and Gen Z market.

Working in an advisory office, I have had the privilege of meeting and talking to a few of these young entrepreneurs and I have noticed a few things. The reason why these Millennial and Gen Z entrepreneurs are leading the market is that they are coming up with solutions to their own problems. One perfect example is the company YOCO, which came up with a solution to the problem small businesses had with adopting an electronic financial service offering.

The key things to consider as an entrepreneur are the following:

• You need to know how to do every job in your business. This is extremely important, as you should know all the processes of the business. This will help you ask the right questions should anything go wrong.
• Try your best to get a mentor. This is someone who has been through it already and will be able to give you helpful and meaningful tips. A mentor is almost like a future you coming back to tell you how to do it faster and better.
• It’s okay to be the youngest person in the room. Greta Thunberg was 15 years old when she went on strike outside the Swedish parliament, so there’s nothing stopping you.

There is a saying that goes, “You are only an entrepreneur when your business is able to operate and generate an income without you”. Entrepreneurship stimulates job creation and drives the economy as a result. But what it truly offers you is freedom. This freedom allows you to realize your dreams.

Now with all this freedom entrepreneurship allows you as a young entrepreneur, the last thing you should have to do is focus on calculating what you need to contribute to your Retirement Annuity to get a tax benefit, or how to properly diversify your portfolio, or even how to incorporate the correct type of business assurance. You still have to be a sister or a brother, a friend, or a parent. You still have other obligations that you have to take care of.

Millennials and Gen Z’s love convenience and time is definitely of the essence. We live our lives in the fast lane. So, while doing this, let your Financial Adviser take away the stress of you having to manage your portfolio. Let your Financial Adviser help you with your financial goals so that you can still enjoy the little things that matter.

The opinions expressed in this article are the opinions of the writer and not necessarily those of PSG. The information in this document is provided as general information. It does not constitute financial, tax, legal or investment advice and the PSG Konsult Group of Companies does not guarantee its suitability or potential value.
PSG Wealth Financial Planning (Pty) Ltd is an authorised financial services provider. FSP 728