Rethinking progress: Way forward may not be to go forward

BIG BUSINESS IDEAS

Stephene Chikozho

THE competitive pressures that businesses face are constantly in flux: new ideas and disruptive technologies emerge, the economic power of African countries shifts and market dynamics change.

Yet business history is littered with companies that ignored change and pushed forward with flawed strategies based on the old environment.

The power of reflection

In the fast-paced world of business, the pressure to constantly innovate and expand can be overwhelming.

Yet, history has shown that periods of reflection can be just as crucial as moments of action.

Take, for example, the story of Econet Wireless, founded by Zimbabwean entrepreneur Mr Strive Masiyiwa.

Facing numerous regulatory and financial challenges in its early years, Econet took a strategic pause to reassess its approach.

This period of reflection allowed the company to refine its business model and ultimately emerge stronger, becoming a leading telecommunications service provider in Africa.

Learning from the past

For many African businesses, looking back can provide valuable insights that inform future strategies.

The agricultural sector offers a compelling example.

Traditional farming practices, honed over generations, are now being revisited and integrated with modern technology to create more resilient and sustainable agricultural systems.

Initiatives like ‘Pfumvudza’ in Zimbabwe are leveraging this blend of old and new to optimise resources and reduce fertiliser and manure waste, demonstrating that progress can sometimes mean revisiting and revitalising past practices.

Strategic retrenchment

In some cases, taking a step back can be a strategic move to consolidate resources and focus on core competencies.

This approach can be particularly relevant in the volatile African market, where external factors such as political instability and economic fluctuations can pose significant risks.

Through retrenching and concentrating on its strengths, a company can build a solid foundation for future growth.

For instance, Dangote Group, one of Africa’s largest conglomerates, has periodically scaled back certain operations to focus on its most profitable ventures, ensuring long-term stability and profitability.

Embracing sustainability

Sustainability is another area where moving forward may require a different approach.

The relentless pursuit of growth can often lead to environmental degradation and social inequities.

African businesses are increasingly recognising the importance of sustainable practices that balance economic growth with environmental stewardship and social responsibility.

Navigating uncertainty

The Covid-19 pandemic has underscored the importance of adaptability and resilience in the face of uncertainty.

For many African businesses, the crisis was a catalyst for introspection and re-evaluation.

Companies have had to pivot, rethink their strategies, and, in some cases, scale back to survive.

This period of forced reflection has revealed that sometimes, the best way to move forward is to pause and reassess, ensuring that future steps are taken with greater clarity and purpose.

The path to progress for African businesses may not always be a straight line forward.

By taking the time to pause, reassess and sometimes even step back, companies can make more informed and strategic decisions that pave the way for sustainable growth.

As the African business landscape continues to evolve, this reflective approach will be crucial in navigating the challenges and opportunities that lie ahead, ensuring a prosperous and resilient future for business.

*Stephene Chikozho is chief executive of Africa Business Inc, a consortium dedicated to fostering collaboration, innovation, and success for businesses in Africa. He writes in his personal capacity. He can be contacted on WhatsApp: +263772409651 or email: ceo@bigbusiness.africa