Doing business in Africa is changing fast. It’s an exciting time for business, no doubt, but there are plenty of challenges too. From infrastructure deficits and political instability to a diverse range of cultural contexts and regulatory environments, businesses face a unique set of hurdles. Balancing profits with making a positive impact is even tougher when you’re dealing with limited resources, huge inequality, and pressing social problems. But these challenges are also big opportunities for companies that want to make a difference.
As companies try to find their way in this changing landscape, a couple of big questions arise: What should businesses really be doing in Africa? Beyond the traditional pursuit of profit maximisation, how can businesses actively contribute to the broader social and economic development of the continent?
Businesses are increasingly recognising the need to go beyond profit and create shared value. However, determining how to measure this impact can be challenging. Effective metrics and frameworks are essential for assessing a company’s contribution to social and economic development. Key performance indicators (KPIs) that focus on job creation, poverty reduction, education, healthcare, and environmental sustainability can provide valuable insights.
Traditionally, businesses measure success by how much money they make for their investors. Although this is important, it doesn’t fully capture the complexities of doing business in Africa. Our continent is built on strong communities and relationships, and everyone shares in the benefits. To truly succeed here, companies need a broader approach that considers more than just profits.
“Key performance indicators (KPIs) that focus on job creation, poverty reduction, education, healthcare, and environmental sustainability can provide valuable insights.”
African businesses have a golden opportunity to completely rethink what it means to be a successful company. This new way of thinking fits perfectly with our African values, like Ubuntu, which is all about caring for others and working together. This approach can transform businesses into powerful forces for good, driving economic growth while uplifting communities and improving lives.
The business case for purpose is compelling. Data consistently demonstrates that purpose-driven companies outperform their peers across various metrics, including revenue, customer loyalty, and employee engagement. Furthermore, these organisations are often perceived as more authentic and trustworthy, attracting socially conscious investors seeking to align their capital with positive impact.
At eHealth Africa, we embody this purpose-driven ethos. Since our inception in 2010, we have been relentlessly committed to improving healthcare in Africa through a variety of approaches. Our public health not-for-profit arm collaborates with governments and NGOs to design and implement data-driven solutions that strengthen health systems. Our for-profit healthcare provider delivers quality care, while our impact investment arm empowers women through financial inclusion. This integrated model enables us to address health challenges from multiple angles, as evidenced by our work in polio eradication, maternal and child health, and disease prevention across 19 African countries.
To make a real difference, businesses need a strategic, big-picture plan. It’s important to listen to the people who are affected by the company and make sure the business goals match their needs. Building a business that can last and protect the environment is key to long-term success. Showing how the company is making a positive impact not only proves its commitment but also helps plan for the future. And let’s not forget, that happy employees create a great place to work where everyone feels passionate about the company’s mission.
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Turning this vision into reality in Africa isn’t easy. There are big challenges like tough regulations, poor infrastructure, and not enough skilled workers. To overcome these obstacles, businesses need to be determined, creative, and work together.
To effectively measure social impact, businesses must adopt robust metrics and frameworks that align with their purpose. This involves identifying key performance indicators (KPIs) that reflect the desired outcomes and regularly assessing progress.
Governments have a big role to play in helping businesses do good, and they can catalyse this movement by creating policies that support these businesses, providing incentives, and establishing solid partnerships.
Understanding consumer perceptions of purpose-driven brands is essential. Research indicates that African consumers increasingly value companies that contribute to society. Knowing and meeting customer needs is key to building a loyal fanbase and growing the business.
As I prepare to address the 2nd Annual FluidRock Conference on “Purpose from an African Business Perspective,” I eagerly anticipate engaging with fellow leaders who share a passion for creating a more sustainable and equitable Africa. Purpose isn’t merely a buzzword; it’s essential for companies that want to thrive in the long run. It’s our compass, showing us the way to a future where everyone can prosper.
We should use the collective power of purpose to build a more equitable and sustainable Africa, where businesses are not simply profit centres but catalysts for positive change.
Ota Akhigbe is a seasoned development leader and social entrepreneur passionate about leveraging technology for healthcare and community development in Africa. As Director of Partnerships and Programs at eHealth Africa, she drives impactful initiatives that improve lives across the continent.
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