IT’S SHOW TIME – ENTREPRENEURS

Let me start with this interesting piece. In 1998, YAHOO was ready to acquire the assets of Google. The latter was willing to let go at a value of $1m but the former thought this was over valuation and refuse to subscribe to anything above $0.75m. The deal could not go through.

Four (4) years later YAHOO realizing their mistake and the obvious rise in value of Google decided to now offer $3b but the later asked for $5b. Again YAHOO considered this as over valuation and so the deal did not go through.

Six year after, in 2008, Microsoft offered to acquire YAHOO for $50b but YAHOO refused to let go. Today, eight years down the line, YAHOO has been acquired by Verizon for $4.8b in cash, less than 10% of what was offered eight years back and interestingly, Google is valued at $545b. Like the history of most African countries, YAHOO was the king of the internet.

What a twist of event!

This is what happens when manager of an organization is unable to see into the future and act fast. This is also true for national economic management. There is enough evidence to support that those countries which refuses to undertake policies and programs for future growth end up ‘mortgaging’ its resources for survival, like we see in most African countries.

Research shows that, the world economy is slowing due to falling commodity prices and stagnation in global trade. The projections point to the fact that by 2030 almost half of the world’s extreme poor people will live in countries affected by fragility and conflicts (Ghana is on one leg because we already have a fragile economy, a more reason we cannot added conflict to our woes).

The World Bank has started a campaign, through its President Jim Kim, to mitigate this looming ‘storm’ by seeking to reduce poverty before the year 2030.

The IMF’s world economic outlook report issued this month titled ‘Subdued Demand: Symptoms and Remedies’ has also projected the global economic growth to slow to 3.1% in 2016 before recovering to 3.4% in 2017, a forecast downward revision of 0.1% point for 2016 and 2017 relative to April.

Some have called for capitalism, let the rich spend for the poor to live, almost reechoing Gandhi’s words, “the rich must live more simple so the poor may simple live”.

The only appropriate remedy for this looming global meltdown especially for Africa is entrepreneurship.

It is time for the governments to create the enabling environment to motivate entrepreneurship.

It is time for businesses to consider diversification in possible mergers and acquisitions.

It is time for young people to be entrepreneurial. The educational sector must be proactive.

We have no choice. We either act or be acted upon.

Dream!

Build Master Mind Alliances!

Act now!

Last month, AGRA embarked on a campaign to mobilize $100b to support agriculture in Africa. Africa is the immediate destination for investment activities, which was confirmed by Mike Bloomberg last month. But I can almost predict that this will be for a season. So the time to take advantage is now. The developed economies will be an attractive investment destination after a meltdown and we cannot compete if not prepared. Let’s develop like Google.

Fellow entrepreneurs and Africans, IT’S SHOWTIME!