Business owners looking to expand their horizons and make a significant impact find Africa to be an attractive destination due to the continent’s vast opportunities and potential for growth. However, these prospects do not exist without their unique challenges and risks. African markets are characterized by political instability, economic volatility, and infrastructure constraints, which require a proactive and effective approach to risk management. Risk management involves tracking market and non-market long-range risks, understanding their adverse impact on the business environment, and managerial responses to reduce risk exposure.
Businesses in sub-Saharan Africa face formidable challenges, with political risks, such as the aftermath of elections or conflict, leading to estimated annual revenue losses of up to 5%. Additionally, economic volatility, often driven by fluctuations in global commodity prices and regional economic policies, further thins out the expected profit margin of businesses and their long-term plans. In such an unpredictable environment, a robust risk management is not just an advantage, it is crucial for effective leadership.
The role of risk leaders in Africa is critical, as they are not only tasked with effectively managing and responding to the numerous and often unpredictable challenges that arise in their industry but also with implementing a proactive risk management approach within their organizations. By instilling a culture of risk awareness and readiness, they transform potential threats into avenues for growth, safeguarding their organizations’ success in one of the world’s most challenging yet promising regions.
Leading the charge in this critical area are five of Africa’s top risk leaders, who exemplify excellence in steering their companies through uncertainty and setting new standards in proactive risk management.
1. Dr. Adenike Fajemirokun, a pioneer in the field of risk management, is recognized as a prominent leader in Africa. In her role as Group Executive Director and Chief Risk Officer at Dangote Industries Limited, she has successfully managed risks within one of the continent’s largest conglomerates. Dr. Adenike has garnered international acclaim for her contributions to the Operational Risk Data Exchange Association (ORX) and the Institute of Risk Management in the UK. She currently serves as a member of the Lagos State Research and Innovation Council and holds positions on several boards of Nigerian companies. Her expertise in assessing risks, implementing mitigation strategies, and promoting corporate governance has not only enhanced the operations of Dangote but has also established a standard of excellence in the industry. Dr. Fajemirokun’s leadership underscores the vital role of effective risk management in fostering sustainable business growth in Africa. She has made significant strides in her capacity as a risk controller and manager, predicting and driving enterprise-wide risk management strategies for all businesses within her industry and subsidiaries, and cementing her reputation as a top leader in the African business world.
2. Sim Tshabalala, CEO of Standard Bank Group, leads Africa’s largest financial institution, driving monumental milestones in the Financial world and managing complex financial, regulatory, and geopolitical risks across multiple countries. With his expertise in risk management, Standard Bank has managed economic volatility and market uncertainties, ensuring its resilience, stability and progress. Under the the South African business leader, Sim Tshabalala, the bank continues to reach significant milestones, connecting African markets with emerging and developed economies, and delivering strong returns to its shareholders. Tshabalala has implemented rigorous risk management frameworks, prioritising credit risk mitigation and regulatory compliance. He has also driven the bank’s digital transformation, emphasising cybersecurity. His strategic vision has solidified Standard Bank’s position as a leading African financial institution, guiding it through challenges while fostering growth and stability.
3. Strive Masiyiwa (Zimbabwe) the Founder and Executive Chairman of Econet Group, continues to define the contours of the telecommunications landscape, championing renewable energy solutions, promoting fintech innovations, and advancing digital connectivity in underserved regions. His relentless spirit and visionary leadership have transformed the business landscape across continents. For nearly four decades, Strive Masiyiwa has not only been a telecommunications and technology entrepreneur but also an investor and philanthropist with a global footprint. Through his strategic investments and bold ventures in diverse sectors, he has catalyzed economic growth through effective risk management skills and fostered innovation in regions as far-reaching as Europe, India, Latin America, the Middle East, and the USA. Strive Masiyiwa’s expertise in risk management has been a cornerstone of his success in navigating complex regulatory environments and spearheading transformative initiatives in technology and finance. His visionary approach to identifying and combating risks has not only safeguarded his businesses but also paved the way for groundbreaking innovations and sustainable growth across industries.
4. Patrick Bitature (Uganda), the Chairman of Simba Group of Companies, is known for his strategic approach to managing risks in diverse sectors. His success is deeply rooted in his ability to identify, assess, and manage risks across various industries. His forward-thinking initiatives have positioned Simba Group of Companies at the forefront of industry trends, driving sustainable growth and fostering a culture of excellence. Hiis adept crisis management capabilities in times of uncertanties have exemplified his unwavering commitment to safeguarding the company’s interests and ensuring operational continuity. His decisive actions and strategic foresight during adversities have not only averted crises but have also steered the company toward enduring success, earning him the deserved reputation as one of Uganda’s most respected and successful business leaders.
5. Phuti Mahanyele-Dabengwa, the Chief Executive Officer of Naspers South Africa, is a power house in risk management. Leading one of Africa’s largest and most influential tech and media companies, she expertly navigates the challenges of rapidly evolving markets, technological disruptions, and global investments. Her strategic vision and robust governance practices ensure that Naspers remains resilient and forward-thinking. Phuti’s leadership is not just about managing risks—it’s about turning them into opportunities for growth and innovation. She truly exemplifies women’s leadership power, setting new standards in the tech industry.
The future of Africa’s business sector is promising but complex. On one hand, there are ample opportunities for further growth, increased financial inclusion, and enhanced economic development. On the other hand, challenges such as regulatory harmonization, political stability, and managing the risks associated with rapid growth in the ever evolving business world. The milestones achieved by these top-risk leaders, their stories of innovation and leadership serve as powerful examples of how to thrive amidst adversity. These leaders in Africa are not just weathering these uncertainties but creating and instilling a culture of resilience and strategic foresight that will guide other business leaders through the path of managing risks. within their organizations. By turning potential threats into opportunities, these leaders are driving growth and stability in one of the most challenging yet promising regions in the world.
