Inclusivity within sub-Saharan African business is key to boosting economic growth and sustainable development, as well as to ensure the benefits were widespread, a new report by the United Nations Development Programme (UNDP) shows.

The report, titled ‘Realizing Africa's wealth - Building inclusive businesses for shared prosperity’, which was released at the World Economic Forum on Africa, on Friday, noted that, involving low-income communities in markets and businesses across Africa was essential.

Collaborative – and amplified – efforts were required to support businesses that were inclusive, through incentives, information and investment schemes, while encouraging business environments that provide opportunities for all potential entrepreneurs, consumers, employees or producers in Africa.

“We need young entrepreneurs and innovators as drivers of inclusive businesses. We need organisations that are willing to take up the roles of catalysts, supporters and funders of inclusive businesses,” the UNDP said.

Inclusive business provided low-income citizens access to opportunities for income, basic goods and services and choice – effectively creating scaffolding between low-income communities and the benefits of Africa’s rapid economic growth.

However, constraints in the business environment and a lack of local support institutions, such as market research firms, credit bureaus, incubators, value chain facilitators and venture capital firms, hampered attempts to grow larger-scale enterprises in low-income regions and expand their impact and reach.

The report tabled four support mechanisms required for the support of inclusive business.

These included providing businesses with the awareness, knowledge, technology and know-how required to operate in low-income regions, and enabling implementation support, such as logistics, transactional, marketing and communication and microbusiness support and assistance services.

Financial motivation included incentives for firms engaging low-income communities, as well as investment and financial backing for businesses venturing into low-income markets.

Download a copy of the report above (note: large file)