The biggest threat to wealth creation in Africa is not lack of capital. Neither is it lack of resources. It is the lack of financial discipline. Think about this.
Your business makes $300 dollars per month. Or you have a job that pays you the same amount. If the business grows and start making $1000 per month(or you get a salary raise), what do you do? Majority of us will first change our home address.
The one or two bedroom house will suddenly become too small. Our neighborhood will suddenly become crowded and noisy. We will no longer find it convenient to use public means and a car will become a need rather than a luxury.
So, what impact will our newly found lifestyle have?First, we will gain the admiration of our peers who will consider us successful(Despite living in debt) But on the other hand, the financial increment we got will be swallowed by the ballooning expenses such as higher rent, car fuel, eating in flashy restaurants etc.
Warren Buffet, one of the world's richest man still live in the small 3 bedroom houses he lived in the 1960s when his business was still unsuccessful. Strive Masiyiwa, a telecom mogul and billionaire in Africa recently wrote that when he left Zimbabwe, his business was already making over one billion dollars yet he lived in a low-class estate(by his standards).Money that would have been invested is put in liabilities). The next generation of millionaires & billionaires will be made of financially disciplined entrepreneurs.
People who will not fall in the trap of matching their peers in a show-off contest. They will appear poor, but at the end of the day, they will surprise everyone with the things they will achieve!