Weak Structures Undermining Business Survival In Africa – Consultant Warns

Business sustainability across Africa is being undermined by weak organisational structures, poor governance systems, and over-dependence on founders, according to Nsikan Ubi, founder and chief executive officer of Nubi Consulting.

Ubi, who spoke during an interview on ARISE TV titled “How to Build a Sustainable Business in Nigeria and Africa”, warned that many enterprises on the continent are built around individuals rather than institutions, making them vulnerable to collapse when leadership changes or growth pressures increase.

She said sustainable businesses require deliberate systems, strong governance frameworks, and long-term strategic thinking that can outlive their founders.

“Growth without structure is simply chaos at scale. Sustainable businesses are built deliberately, not accidentally,” she said.

According to her, several structural weaknesses continue to limit business survival in Nigeria and across Africa. These include excessive reliance on founders for decision-making, weak financial discipline, inadequate governance structures, inability to adapt to changing market conditions, and a short-term focus that undermines long-term planning.

She noted that these challenges often result in businesses that scale rapidly but lack the institutional strength to endure economic shocks or leadership transitions.

Ubi also highlighted practical measures that African entrepreneurs must adopt to build resilient organisations, including strengthening cash flow management, diversifying revenue streams, improving operational efficiency, and investing in leadership development beyond the founder.

“The true test of a business is whether it can thrive without the founder in the room. Businesses scale when knowledge and decision-making become institutional rather than individual,” she said.

She urged entrepreneurs to shift away from short-term growth targets and adopt a long-term mindset focused on sustainability and continuity.

“Long-term thinking is one of the most underrated competitive advantages in business. Founders should focus less on building businesses that grow quickly and more on building businesses that can endure,” she added.