Africa Journal of Management

Rethinking Business and Society in Africa through Africapitalism: Critical and Comparative Perspectives

The special issue aims to advance the debate on business and society in Africa through a special focus on Africapitalism.

In the last two decades, Africapitalism has gained traction as a key framing of the desire for a new, viable, and decolonised form of management and economic philosophy. Although Africapitalism is conceptualised as a philosophy of the future, informed by a fusion of indigenous African values and possibilities embedded in post-colonial practices of private ownership, its conceptual provenance and translation into practice remain contested. Stimulated by systematic research in the last decade, scholars and practitioners have leveraged this concept to promote new ways of aligning business rationale and economic systems to societal aspirations. This proposed special issue provides an opportunity to 1) track disparate attempts to translate Africapitalism into practice and 2) attain clarity about the state of research on the promises and contestations of this concept. 

Background

The success of liberalism is largely attributed to the triumph of capitalism. This explains why thinking about the crisis of liberal democracy is often equated with concerns about the future of capitalism. Although capitalism is often misunderstood as an economic philosophy that is exclusive to Western democracies, considered as “a mode of economic coordination … fundamentally anchored on the principles of freedom (liberty), individuality (self-interest), diligence (thrift and self-discipline), rights (private property), and equity (fairness)” (Amaeshi and Idemudia, 2015:213), capitalism is not new in Africa. Notwithstanding, the nature of capitalism in Africa is contested. Chitonge (2016) captures this aptly in his observation that scholarly debates on capitalism in Africa continue to be contested due to disagreement about the understanding of what a capitalist society means.

This contestation accounts for the burgeoning research on the nature, dynamics and consequences of capitalism in Africa. For instance, the nature of capitalism, as well as the presence or absence of an effective capitalist class, was a key concern in the debates about capitalism in Africa in the 1970s. Crucial in these debates was a focus on the extent African societies can be described as capitalist or pre-capitalist, and what either of the two possibilities might mean for the nature and pattern of the evolution of capitalism in the continent. For Chitonge (2015), these debates have persisted because analysts assume an idealised imagination of the path to capitalism. To this end, Africa’s divergence from the ‘conventional’ path to capitalism is considered by some theorists as sufficient ground to conclude that African societies are non-capitalist, and by implication, pre-capitalist.

Taking a contextual approach, Iliffe (1983) suggested that the nature of capitalism in Africa is partly a function of its pre-capitalist cultural context and the “very late stage in the global history of capitalism” that had been reached when capitalism penetrated Africa (Leys, 1994:22). Hence, based on local political climates, Iliffe (1983) identified three variants of local capitalism that seem to have taken form since independence. These are ‘anti-capitalist’ regimes that were avowedly committed to socialist development and thus systematically sort to suppress the development of indigenous capital (Ethiopia, Tanzania and Ghana). The second category  is the  ‘parasitic capitalism’ that emerged in Liberia and Mobutu’s Zaire. In this system, state officials and politicians leverage their control of state power and access to resources via neo-patrimonial networks to promote their own private accumulation and that of supporters with little regard for individualism or free market principles. The third form of local capitalism emerged in countries like Nigeria and Kenya where the government strove to ‘nurture capitalism’ often through genuine attempt to promote development of an indigenous business class in some segments of the economy while recognising the advantages of competition and free market.

Heilman and Lucas (1997) argue, however, that ‘nurtured capitalism’ as in the case of Nigeria might be better characterised as pro-business and not necessarily pro-capitalist. This is because government policies in the context of nurtured capitalism tend to allow for the accumulation of private wealth through rent-seeking without ensuring the productive investment of capital. Similarly, although Kennedy and Kennedy (1988) first proposed that Africa’s capitalist classes were at a stage of development comparable to their European precursors 200 years ago, his latter view (Kennedy 1994) meant  that the question regarding whether traditional cultures and social institutions are sufficiently ‘appropriate’ and capable of supporting a viable local capitalist ethos is largely irrelevant if the states have failed to create the institutional basis for a fully commoditised, and competitive market economy. Kennedy, therefore, concludes that “the barriers to African capitalism are only likely to be overcome, if governments are willing and able to make certain crucial decisions and actions that they and they alone have the power to undertake”(Kennedy,1994,192; Carmody, 2016). In contrast, Cox and Negi (2010, 77) argued that capitalism in Africa is stunted because for the most part, the necessary cultural condition for its development has been missing. They point out that indirect rule during colonialisation froze property rights in its precapitalist form, and the extensiveness of these pre-capitalist property relations blocks the development of capitalism in the continent.

The role of African culture in the debates about capitalism remains ambivalent. It is simultaneously considered the reason capitalism failed to take root in Africa as well as a source from which one could draw valuable insights to strengthen positive aspects of capitalism in the continent. To make sense of this ambivalence, it would be useful to consider that theories of capitalism in most cases adopt a structuralist framework that emphasises the role of class relations, world economy, degree and condition of the proletariat and peasants and the evolution of the capitalist state (Heilmann and Lucas, 1997). Also important in this regard are views that focus on understanding capitalism through analysis of the nature and motivation of African entrepreneurs (Leys and Berman, 1995).

In these debates about capitalism in Africa, two key dynamics must be noted. The first is that some form of capitalism emerged in Africa because from the time Africa came into contact with the capitalist system, it became part of this system largely as a ‘periphery of the periphery’ (Chintonge, 2015). The second dynamic is that capitalism is flawed in ways that complicate its ability to promote economic development (Heilman and Lucas, 1997). Given these dynamics, it is plausible to conclude that a great deal is left unexamined if Africa is understood simply in terms of everything Europe pretends not to be (Cooper, 2014).

We consider the question of finding a viable, practicable and contextually embedded management and economic philosophy suitable to Africa one of such unexamined questions. It is in this regard that the idea of Africapitalism which was proposed in 2012 by prominent Nigerian entrepreneur and philanthropist, Tony Elumelu, becomes crucial. He considers Africapitalism “an economic philosophy that embodies the private sector's commitment to the economic transformation of Africa through investments that generate both economic prosperity and social wealth”. This idea is unique because it is both an expression of a utopia and an articulation of a principle that could guide practical action in the here and now. Rather than attempt to understand the idea of Africapitalism mainly through comparison with other varieties of capitalism, a promising approach is to interrogate its uptake by practitioners and critique in recent scholarship. We consider this to be a viable means to cash out the promise of the concept while taking into account the changing context of practice.

Ardent observers and scholars of business in Africa are by now aware of the idea of Africapitalism. Whereas some are sceptical about the novelty of the idea, others have embraced it as a guiding principle of action in the quest to re-align the relationship of businesses and society in Africa. This divergent reception of Africapitalism can be understood if we note that the concept emphasises the sense of place, progress, parity and peace as essential characteristics of fit-for-purpose capitalism (Amaeshi and Idemudia, 2015). In this sense, it could be considered an African contribution to the global discourse on capitalism. But, Africapitalism is much more.

At its heart is the belief that fostering a better and prosperous society is a collective project that should not be left to the government and civil society, especially in Africa. Rather Africapitalism suggests that businesses can also constitute a force for good, given the vast resources they control, the power they wield, and their expertise. In other words, business activity should complement public actions for social prosperity.

In the words of Mr Elumelu: "Africa's renaissance lies in the confluence of the right business and political action" (The Africapitalism, Q4, 1(1), 2012). As much as this is a desirable aspiration, it harbours some complex questions, trade-offs and dilemmas.

Africapitalism represents an indigenous view of business and market, one that is shaped by alternative worldviews of abundance, solidarity, and win-win mentality characteristic of many indigenous African societies. The emergence of initiatives like the One Kindred One Business Initiative (OKOBI) of the Imo State Government in Nigeria, which focuses on group-based entrepreneurship for economic empowerment and development, for example, can account for how these worldviews are profitably translated into action in different African societies. 

It is clear from the above discussion that the Africapitalism philosophy is an ambitious project. As a result, it has provoked significant debates (Amaeshi et al., 2018; Ouma 2019; Adegbite et al., 2020). The interest shown by scholars and practitioners has led to new developments that merit further exploration in a special issue devoted to the idea, especially after more than a decade of the introduction of the concept by Mr Elumelu and Amaeshi and Idemudia (2015)’s premier on Africapitalism, hence our proposal.  We seek to deepen the understanding of the tradeoffs involved with the pursuit of Africapitalism, and how they should be handled. What are the lessons to draw from attempts made so far to implement the idea of Africapitalism? In short, does Africapitalism have a future, given its present?

Aims and Scope of the Special Issue

This special issue aims to bring these questions to the fore. We invite empirical and theoretical papers, including those that draw on or challenge the principles of Africapitalism as outlined in Amaeshi and Idemudia (2015), to explore the problems, puzzles, and prospects of Africapitalism as a way to reimagine the nature of business-society relations in Africa. We are particularly interested in papers on how the Africapitalism construct affects socio-economic and environmental challenges in Africa, as well as critical perspectives on Africapitalism.

Indicative questions contributors are invited to consider include the following:

1.     Business and sustainable development: to what extent does Africapitalism promote the sustainable development goals (SDGs)? What innovations do Africapitalism offer in advancing the sustainable development goals locally and globally?

2.     Innovation and Entrepreneurship: how do African entrepreneurs balance profit with social impact? how does Africapitalism encourage entrepreneurship and innovation?  

3.     Strategy and international business: how does Africapitalism’s localised business models fit within the broader context of international business and global competition? What challenges and opportunities do Afri-capitalist firms face when expanding globally? How can Africapitalism principles of communal values, local ownership and inclusivity help businesses compete on a global scale? 

4.     Business and government relations: what is the role of governments in supporting, promoting, regulating indigenous Africa business? How can Africapitalism advance good governance in Africa?

5.     Indigenous businesses: How does Africapitalism help Africapitalist entrepreneurs navigate the complexities of doing business whilst preserving their African cultural values? What indigenous strategies can help redefine the role of ethical business in society?

6.     Philosophical interrogation and critique of Africapitalism: what are the principles and values that underpin Africapitalism and how are they aligned with African philosophies like Ubuntu or communal values of Harambee?

7.     Finance and investments: how do innovative financing initiatives like impact investing and sustainable finance advance Africapitalism?  How do Africapitalists address the challenges of financial inclusion among the marginalised community and businesses in the informal economy?

8.     Marketing and consumer behaviour: how does Africapitalism influence ethical marketing and consumer responsibility? What role do traditional community practices like rotating savings and credit associations (ROSCA) play in promoting local entrepreneurship?

9.     Human resources management: What is the role of Africapitalism in talent development, skill building and employability?  How are African communal values like solidarity and collective well-being inform modern HRM practices?

10.  Supply chain management: How can Africapitalism influence global supply chains and global value chains to become more ethical, inclusive, just and fair? How do Africapitalists address value addition within their local supply chains, and how can they leverage on technology to improve/scale their businesses? 

The list is not exhaustive. Papers could focus on the broad areas of business, management, and the social sciences.   

References

Adegbite, Emmanuel, Olabisi Daodu, and Jacob Wood. 2020. “Will Africapitalism Work?” Africa Journal of Management 6 (4): 419–434.

Amaeshi, Kenneth, Adun Okupe, and Uwafiokun Idemudia, eds. 2018. Africapitalism: Rethinking the Role of Business in Africa. Cambridge University Press.

Amaeshi, Kenneth, and Uwafiokun Idemudia. 2015. “Africapitalism: A Management Idea for Business in Africa?” Africa Journal of Management 1 (1/4): 210–223.

Carmody, P. (2016). Variegated capitalism in Africa: the role of industrial policy. https://roape.net/2017/01/04/variegated-capitalism-africa-role-industrial-policy/ accessed 25  January 2018

Chitonge, Horman. 2015. Economic Growth and Development in Africa: Understanding Trends and Prospects. Routledge Studies in African Development. Hoboken, NJ: Taylor & Francis.

Cooper, F. (2014). Africa in the World: capitalism, empire, nation-state. Harvard University Press.

Heilman, B., & Lucas, J. (1997). A social movement for African capitalism? A comparison of business associations in two African cities. African Studies Review, 40(2), 141-171.

Iliffe, John (1983). The Emergence of African Capitalism, London and Basingstoke: Macmillan Press

Kennedy, P. (1994). Political barriers to African capitalism. The Journal of Modern African Studies, 32(2), 191-213.

Kennedy, P. T., & Kennedy, P. M. (1988). African capitalism: The struggle for ascendency. CUP Archive.

Leys C. and Berman, B. J. (1994) Introduction. In African Capitalists in African Development (ed.) B.J. Berman and C. Leys,1-10.Boulder, CO: Lynne Rienner Pub.

Leys, C. (1994). African capitalists and development: theoretical questions. African capitalists in African development, 11-38.

Ouma, Stefan. 2019. “Africapitalism: A Critical Geneology and Assessment.” In Africapitalism: Sustainable Business and Sustainable Development in Africa, edited by Uwafiokun Idemudia and Kenneth Amaeshi, 144–157. London: Taylor & Francis.