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Paper short abstract:

This paper seeks to enhance understanding of the role large enterprises play in driving structural change. It examines their business strategies in influencing industrial development—focusing on investment decisions aimed at building scale and scope, and in advancing production capabilities.

Paper long abstract:

This presentation will explore the centrality of business models in Africa to the process of structural change by developing a taxonomy of business models across distinct time periods. Building on insights from an initial landscaping exercise, the presentation will categorise and analyse the evolution of these business models, including multinational corporations, diversified business groups, and state-owned enterprises, to understand their varying roles in fostering or hindering structural change. By conducting a comparative analysis, the research identifies shifts in the types of businesses over time and evaluates their contributions to industrialisation, economic diversification, and productivity enhancement. Lessons from East Asian economies provide a contextual framework for understanding the factors that have made business models more or less integral to structural change in Africa.

This presentation will also explore the strategies of large enterprises in driving structural change in Africa, focusing on their business models as a complex interplay of factors influenced by both internal and external environments. Large businesses often hold significant power, with the ability to influence policies. Understanding how these power dynamics shape their decisions to invest in production capabilities is crucial for designing policies that can shape structural change. For instance, the balance between competition and entrenched market positions plays a pivotal role in shaping their strategies. A deeper exploration of the strategies employed by large enterprises is essential to understanding their impact on structural change and in turn influence more targeted policies.