Africa’s Capital Markets must learn to price Vision too
The author contends that African capital markets rely too heavily on historical financial data and should develop better tools to value vision and strategic potential. This shift is necessary to identify companies capable of future market dominance.
Why it matters
Challenges traditional investment paradigms in developing economies to foster innovation and long-term growth.
Every entrepreneur in Ghana knows the question.
"Do you have three years of audited accounts?"
It is a fair question. Investors deserve evidence. Banks must manage risk. Regulators have a duty to protect capital. No serious business leader should argue otherwise.
Yet there is another question we ask far less often: can this company become strategically indispensable? At least no one has asked me or anyone I know at home before. Only over the pond.
But that may well be the more important question of our current time.
Across much of Africa, investment decisions remain anchored in historical performance. Audited financial statements, collateral, operating history and cash flow projections dominate boardroom discussions. These are essential indicators of financial discipline and corporate governance. They tell us whether a business has been responsibly managed.
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