Africapitalism: (def) The private sector’s commitment to Africa’s development through long-term investment in strategic sectors of the economy that create economic prosperity and social wealth.
Heirs Holdings
Wealth Creation
The private sector in Africa — both foreign multi- nationals as well as African business leaders — must break free from the historical tendencies of exploitation and extraction of wealth (i.e., rent- seeking), and instead focus on generating pro!t through wealth creation. The Nigerian oil industry is a case in point — after 50 years of pumping out billions of dollars of crude oil and natural gas, there is no indigenous oil, and Nigeria still imports refined petroleum for domestic consumption.
Funding Entrepreneurship
Leveraging private enterprise to solve problems must be a core area of focus not just for investors, but also for NGOs and philanthropists as described in detail in a 2012 report from the Monitor Group: From Blueprint to Scale: The Case for Philanthropy in Impact Investing. Some of Africa’s greatest private sector successes were launched with public and philanthropic funds. This entrepreneurial investment model should be the model for future philanthropy and aid in Africa. It should also be a guide for Africa’s own emerging philanthropists.
Transparent Competitive Markets
Governments are not responsible for running industries; they are responsible for providing a supportive environment for businesses to thrive, in markets that are fair, transparent, and open. Their policies should encourage creation of new wealth rather than support the exploitation and extraction of existing wealth.
