NextGen wealth in Africa can in part be attributed to those set to inherit or are already involved in a family business.
At the same time, regulatory and political landscapes are becoming increasingly complex and those working to advise families must adapt and be ready to navigate an ever-changing business environment.
What characterises NextGen is their truly global outlook. Many have studied away from their home countries at top global universities, and as digital natives – expecting access to information 24/7, 365 - their demands differ from older, founder generations.
This digital exposure also brings to life different beliefs and systems in the business which is a competitive edge in a fast-moving marketplace.
Planning, managing and executing succession plans are vital in ensuring continuity – for the family business and the region's economy.
Formal and planned transitions that are transparent and agreed upon in consultation with the whole family help smooth the process; they bring harmony between management and shareholders, reassuring that the company's culture remains intact, and its long-term strategy remains aligned with the business's ambitions.
Many family businesses in Africa are reaching a critical stage in their succession – second-generation family members are already being integrated into business operations.
Family-owned firms have proved their resilience decade after decade. Never more so than during the pandemic and now through the complex geo-political tensions both continentally and globally.
If they can involve the younger generations and embrace technology and sustainability with a clear strategic focus, they will again prove their resilience.
This is a journey for the family and its businesses. No quick fix will provide a long-term, robust and sustainable future-proof solution.
The first step is to engage and procure credible, experienced and trusted expertise.
Mr Bhana is Director – Middle East, Africa and India, Jersey Finance.
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