From Potential To Performance: The Cost Of Weak Institutions
By JULIET EKANEM
Talent Abundance, Systemic Deficit
ACROSS major African cities such as Lagos, Abuja, Johannesburg and Cape Town, a consistent pattern emerges: a population rich in skill, creativity and entrepreneurial drive, yet constrained by structural weaknesses that limit sustainable success. Observers of Africa’s informal and formal economies frequently encounter young men and women capable of building viable enterprises with minimal capital. However, these efforts often stall or collapse, not for lack of talent, but due to the absence of systems that convert individual capability into long-term economic value.
This disconnect points to a central development challenge facing Africa—not a deficit of human capital, but a systemic failure to support its productive use. While global narratives often frame Africa as “talent-poor,” evidence from informal markets, technology hubs and small-scale manufacturing contradicts this claim. Instead, the continent faces what analysts describe as a “conversion problem”: the inability to translate skills and ideas into durable institutions, enterprises and industries.
Education, Markets and the Execution Gap
Each year, African universities and technical institutions produce millions of graduates. Yet enterprise survival rates remain low, with many businesses failing within their first year. Structural barriers explain much of this outcome. Limited access to market information prevents informed decision-making. Weak linkages between producers and consumers isolate entrepreneurs from scalable demand. Inadequate business education further widens the execution gap, forcing individuals to navigate complex challenges without institutional guidance.
This environment produces what economists describe as “execution fatigue”—a condition where individuals shoulder every responsibility alone, from financing to compliance, marketing and logistics. Over time, this unsustainable burden erodes productivity and innovation.
Lessons From System-Driven Economies
Comparative development history offers valuable insight. Countries such as Singapore, Finland, South Korea and Japan transformed their economies not through motivational campaigns but through deliberate system-building. Education systems were redesigned to prioritise problem-solving over memorisation. Industrial policies aligned innovation with market access. Governance frameworks rewarded execution, accountability and scale.
In Finland, curriculum reform shifted emphasis from rote learning to applied thinking, producing measurable improvements in innovation outcomes. Singapore combined strong institutions with private-sector discipline, enabling small enterprises to integrate into global value chains. These reforms demonstrate that talent flourishes most effectively within predictable, supportive systems.
Entrepreneurship Beyond Inspiration
Across Africa, entrepreneurship discourse often prioritises inspiration over infrastructure. Conferences, motivational slogans and short-term training programmes proliferate, but frequently lack follow-through mechanisms. Development experts caution that inspiration without structure produces limited results. Sustainable enterprise growth requires mentorship pipelines, access to finance, regulatory clarity and institutional support.
Several private initiatives have emerged to address this gap by focusing on frameworks rather than rhetoric. These platforms emphasise market literacy, mentorship and systems thinking, seeking to improve enterprise survival rates rather than simply increasing start-up numbers.
Fixing the Ladder, Not Celebrating the Climb
Development analysts argue that policy focus must shift from celebrating individual success stories to strengthening the ladders that enable broad-based mobility. Access to finance remains limited, policy environments often discourage small businesses, and mentorship ecosystems are underdeveloped. As a result, for every successful entrepreneur, many equally capable individuals remain excluded.
Building Systems for Inclusive Growth
Africa’s long-term growth prospects depend on its ability to build systems that support execution at scale. This includes reforming education to prioritise applied problem-solving, investing in entrepreneurial infrastructure, strengthening collaboration between academia, government and industry, and rewarding results over rhetoric.
The challenge is not one of belief or ambition, but of structure. With deliberate system-building, Africa’s widely acknowledged talent base could become a sustained driver of inclusive economic growth.
