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Every day new lists of "African Lions", "African Tigers", and "African Growth Champions" run through the international press and give the impression of a booming continent. The meaning is that these countries have exorbitant growth rates, huge growth potentials, large investment opportunities, and rich labour and human resources as assets for future development. However, these growth opportunities can only be used when qualified staff is available so that human resources development is key for African firms moving up the "globalization ladder" and for German firms being active in Africa. Because of the "mismatch" in African tertiary education systems (enrolments and graduations do not correspond to the needs of the major employment sectors) new approaches are needed to fill the gaps in human resources at country and firm levels. So, newly designed and innovative models of qualifying and recruiting staff are needed.

Based on a critical assessment of the views of international consulting companies on African business opportunities Professor Karl Wohlmuth gave a presentation at a meeting of Afrika-Verein der deutschen Wirtschaft e. V. in association with the Jacobs University (Link: Programme). Economics Professor Karl Wohlmuth emphasized in his presentation four issues (Link: Presentation):

First, New Business Areas and New Consumer Classes in Africa – The Development Model determines the Structure and Demand of Qualified Staff

Second, Dynamic Development of African Enterprises and Entrepreneurship – The Stage of Globalisation determines the Structure and Demand of Qualified Staff

Third, Diverging Demographic Developments in Africa – The Objectives of Employment Generation and Entrepreneurship Development will determine the Structure and Demand of Qualified Staff

Fourth, Innovative Models of Qualifying and Recruiting Staff in and for Africa

It was shown that only 13 countries in Africa have some characteristics of "inclusive growth", as revealed by looking at ten important human development, competitiveness, governance, technology and economic performance indexes. Only countries with characteristics of "inclusive growth" can anticipate a broad development of formalized small and medium sized companies, thereby solving employment and social cohesion problems and building a pool for entrepreneurs and qualified staff for the further growth of firms and businesses in size and in number. It was as well shown that there is a very divergent landscape of companies in Africa. While some few firms are "African Challengers" moving quickly up the "globalization ladder", the basic conditions for the growth of formalized small and medium sized companies are missing in many African countries. Also, the "demographic dividend" can only be captured in African countries where the tertiary education systems are drastically reformed, where the "demographic transition" takes place and allows for saving, consumption and wealth generation, and where stable employment is created in key employment sectors so as to absorb the growing labour force. These three conditions are present only in few African countries. Therefore, innovative models for qualifying and recruiting staff are needed by German firms so as to benefit from the emerging business opportunities in Africa. These firms can overcome staff shortages by cooperating with African firms and entrepreneurship networks, with African universities and research institutions, and with African initiators and executors of development projects.

These issues are discussed in greater detail by Professor Karl Wohlmuth in an essay on "African Lions, African Tigers, and Emerging African Middle Classes – How the International Consulting Business looks at Africa". This essay will be published in IWIM's Blue Series Discussion Papers (Link: IWIM Blue Series Discussion Papers).