Africa’s Business Dilemma: Why Small Hustles Thrive but Big Enterprises Don’t

By Adonis Byemelwa

A few months ago, The Economist made a stark observation: "Africa has too many small businesses, and too little business." That single line lingers, like an echo that refuses to fade. It is not a statement about the continent's lack of ambition or capability.

Instead, it points to a systemic fracture—a stubborn, structural bottleneck that continues to choke Africa's economic potential.
There are fifty-four countries in Africa, rich with cultures, resources, and human capital.

But none have a single company on the Forbes Global 2000. Not one. In terms of scale, Africa houses just 60% of the large firms one would expect given the size and vibrancy of its economies. The discrepancy raises hard questions, the kind that have no comfort in their answers.

Is it talent? Hardly. One only needs to walk into a bustling market in Lagos, a tech hub in Nairobi, or a solar startup in Kigali to see ingenuity at work. Is it ambition? Not. African entrepreneurs are among the most tenacious in the world. The problem is deeper and rooted in an uneven playing field stacked high with roadblocks.

Finance remains the most cited hurdle. Starting a business means navigating collateral requirements and bracing for interest rates north of 20%. For those fortunate enough to grow their ventures, payments come late—90 days or more is not unusual. And still, the banks thrive.

Kenya's NCBA Group just posted profits exceeding KSh 61.8 billion, or nearly $460 million. There is money in the system. The question is, why does so little of it flow toward businesses that generate value and jobs?

Then there's access to markets. A flight between African capitals can cost upwards of $400, more than a round-trip to Europe. Intra-African trade, though widely preached, is logistically and economically unviable for many.

Goods can be shipped more easily and affordably from China to Kenya than from Kenya to Nigeria. Africa's internal trading costs, delays, and duplications have made a mockery of regional proximity.
Fifty-four countries mean fifty-four licenses, regulations, and jurisdictions.

The fragmentation cripples opportunity. Even cross-border payments aren’t spared; routed through the U.S. dollar, they bleed an estimated $5 billion annually from African economies.

The tools to change this exist. AfCFTA aims to unify the trade landscape. SAATM promises a single air transport market. PAPSS could revolutionize payments. But these are mostly names on paper, not yet movements in action.

Despite the structural weight, hope endures. Visionaries across the continent are shifting gears. As Kimani Munene wa Mugwe noted, the creative economy could be Africa's silent bridge. Films, stories, and music not only build narratives but also stitch nations together.
Perception drives tourism, trade, and trust. When Africans start to see each other beyond news headlines and statistics—when Lilongwe becomes a weekend getaway, not just a political capital—business flows.
The current challenge isn't just economic. It's psychological. There exists a long-standing perception of weakness, a narrative absorbed and repeated until it feels like truth. Sheena Patel's words cut through this haze: "We have always been perceived as weak… All I know is that we can change the narratives, and it's high time."
Change is neither instant nor easy. It requires more than policy frameworks. It demands political will, cultural trust, and cross-sector collaboration.

As Ayub Robert observed, there is a chasm between boardrooms and the ground reality. Great ideas are often left to wither without the political goodwill to anchor and implement them.

Yet, the tide is not irreversible. Nama Tasi sees a slow, steady shift. Just a few years ago, instruments like AfCFTA and PAPSS were non-existent. Now they stand ready. The task ahead is to breathe life into these mechanisms, move from idea to execution, and shift from local silos to continental cooperation.

Ultimately, Africa does not lack capacity. It lacks connection. The states and their economies remain too tightly fused, limiting both public and private initiative. Amoroso Gombe's analysis is blunt but necessary. The continent needs small, mission-focused states that regulate wisely, tax fairly, and step back when the private sector can step up.

The question isn't whether Africa has the talent. It does. It’s not about whether the money exists. It does. It's about creating systems that trust entrepreneurs, enable them to scale, and connect them.

The Economist issued a challenge, one that might sting but also spark something deeper. Africa does indeed have too many small businesses and too few businesses. But that need not be its future. Individually, the continent's entrepreneurs may be small. But together, they form a giant waiting to rise.

If trust can be built, if borders can be bridged, and if policies can shift from paper to pavement, the narrative can be rewritten. Not by donors, not by foreign powers, but by Africans—bold enough to imagine a different tomorrow, and united enough to build it.