Business experts who gathered at just concluded the Family Business Summit (AFBS’24) have advised family business operators across African countries to leverage strong collaboration among family businesses to enhance the African economy.

They also said that family businesses are the backbone of the African economy and they contribute significantly to employment and Gross Domestic Product (GDP) growth in African countries.

Speaking at the third edition of the Africa Family Business Summit with the theme “Governing Your Family Business into the Future.” A BanyanGlobal Family Business Advisor, Dennis Jaffe, said that for family businesses to stand the test of time, they must embrace the right values and also cautioned that families must critically examine their talents to determine how these talents would be deployed to various aspects of the businesses.

He added that the survival of family businesses across generations primarily depends on structures built to enable the business to outlive the founding fathers.

He advised that family businesses should allow successors to run with their ideas without necessarily being bugged by pre-existing templates of their predecessors.

The Director General of the Lagos Chamber of Commerce and Industry (LCCI), Dr Chinyere Almona, has described family businesses as the backbone of the African…

The Director General of the Lagos Chamber of Commerce and Industry (LCCI), Dr Chinyere Almona, has described family businesses as the backbone of the African economy, constituting 80 per cent of the continent’s businesses.

She spoke in Lagos during the third edition of the Africa Family Business Summit (AFBS’24) with the theme “Governing Your Family Business into the future.”

The two-day AFBS, one of the biggest gatherings of businesses in Africa, attracted over 200 participants from across the continent.

“Next Generation Panel Discussion,” one of the roundtable discussions at the summit featured managers of family businesses that have survived to the second and third generations.

In her remarks, Almona noted that family businesses contribute significantly to employment generation and Gross Domestic Product (GDP) growth in Africa.

She said, “As members of African businesses, family businesses, or those who provide service to family businesses, you would know that family businesses are the backbone of the African economy and they contribute significantly to employment and GDP growth.

“Statistics reveal that African family businesses constitute 80 per cent of all businesses in Africa and are responsible for about 70 per cent of employment in some countries. In some countries, it is about 90 per cent but an average of 70 per cent.

“They also outperform their non-family counterparts in terms of longevity and resilience thanks to their strong commitment to sustainable practices and community engagement.”

She advocated strong collaboration among family businesses to drive the African economy.

The DG also expressed LCCI’s commitment to be a major part of the African Continental Free Trade Area, AfCFTA, saying “We can’t be left behind. We must ensure that we move the barriers and the blockade and the mountains before businesses as they engage regional trade.”

In his presentation titled, “Need for wealth planning to secure a family legacy for the next generation,” Sven Nicolas Haudenschild, Managing Director, Estate Planning of the IPG Howden Switzerland, said 70 per cent of wealth transfers fail by the second generation, while only 10 per cent survive to the third generation.

He identified family disputes, taxes, outstanding liability, wealth dilution from legacy transfer, creditors’ claims, cross border wealth transfer as part of the reasons why it is so difficult to pass on wealth intact.

In his welcome address, Dr Sydney Vanderpuye, Director of Finance, ECOWAS Bank for Investment and Development, said the summit remains a pivotal platform to exchange ideas and chart a path towards a more prosperous and defining future for family businesses across the continent.

“These statistics underscore the resilience and enduring legacy of family businesses in our society. However, they also highlight the need for continuous learning and adaptation to ensure sustained success in an ever-changing business landscape.”

The director of the Family Business Initiative, Dr. Okey Nwuke said many family businesses have gone out of business owing to a vast array of issues, saying about 24 million family businesses in Nigeria contribute up to $200 billion to the national economy.

In her keynote address, the founder of the Chair Centre Group, Ibukun Awosika highlighted the need for a family business to clearly articulate its vision.

She noted that the survival of family businesses across generations primarily depends on structures built to enable the business to outlive the founding fathers.

She also advised that family businesses should allow successors to run with their ideas without necessarily being bugged by pre-existing templates of their predecessors.

Speaking further, Awosika stated that, for family businesses to stand the test of time, they must embrace the right values. She also cautioned that families must critically examine their talents to determine how these talents would be deployed to various aspects of the businesses.