Experts warn of continued business crisis amid succession gaps in sub-Saharan Africa

Financial, business, and legal experts have sounded the alarm over a looming crisis in business continuity and sustainability stemming from succession gaps following the death of premier founders.

This concern, particularly prevalent in family-owned enterprises across the sub-Saharan Africa, has prompted calls for strategic succession planning to weather the storms that often accompany the passing of key leaders.

According to Robin Bairstow, CEO of I&M Bank, the absence of premier proprietors significantly increases the risk of business disruption.

"Many businesses don't celebrate their first anniversary after the death of their proprietors," Bairstow warned.

Legal expert Sim Katende emphasized the common practice of businesses resorting to contracting administrators to manage estates in the absence of their founders. Katende stressed the prevalent anxiety among businesses facing succession crises.

Urging proactive measures, Dr Maggie Kigozi, former executive director of Uganda Investment Authority, advocated for the adoption of trustees councils to oversee business administration beyond the tenure of initial proprietors.

"It is crucial for businesses to embrace the trustees council to ensure their continuity and growth," Dr Kigozi said.

As economic challenges persist, the concern over succession crises intensifies within the financial and business sectors.

The call for strategic succession planning and institutional structures to manage transitions becomes increasingly urgent to safeguard the longevity of enterprises beyond the lifetimes of their founding leaders.