The Succession Crisis: Why Africa’s Family Businesses Are Failing

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The co-founder of Tengen Family Office, Mr. Aigboje Aig-Imoukhuede, has sounded a warning about Africa’s economic future, citing the continent’s inability to sustain family businesses across generations as a major obstacle to development.

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Speaking at the Lagos Business School International Family Business Conference 2025, themed “Preparing the Next Generation for Stewardship: Building a Lasting Legacy for Family Businesses,” Aig-Imoukhuede emphasised that strong economies are built on the foundation of thriving family enterprises.

“The mortality of family businesses has a perfect correlation with our stunted development. While other regions build on existing business legacies, Africa repeatedly dismantles its economic gains. Every time we start from the bottom, others build on what has been built. You cannot compete with compounding,” he said.

Aig-Imoukhuede highlighted the long-term advantages of structured business succession, drawing comparisons to global economic powerhouses such as JP Morgan and the Rockefellers.

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“The family enterprise is broader than the family business. It includes governance, philanthropy, and long-term investments,” he noted, urging African entrepreneurs to adopt structured succession planning to ensure continuity.

Aig-Imoukhuede’s remarks added urgency to ongoing discussions about economic transformation in Africa. “Without deliberate efforts to institutionalise family businesses, the continent will struggle to compete on the global stage and break free from cycles of economic stagnation,” he warned.

Omowunmi Tunde-Obe, Executive Director, Business Development and Innovation at PUNCH Nigeria Limited, emphasised the importance of preparing the next generation to sustain legacies.

“My uncle stepped in as regent, steering the company through turbulent military crackdowns. He not only ensured its survival but made it Nigeria’s widest-selling newspaper,” she said.

Tunde-Obe detailed her gradual immersion into the business, crediting training programs and board roles for shaping her leadership. “I developed a hunger and passion for making a difference,” she noted, reinforcing the need for structured succession to uphold institutional legacies.

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Dr. Cosmas Maduka, founder and Chief Executive Officer of Coscharis Motors Limited, emphasised the need for intentional leadership in sustaining family businesses beyond the founder’s lifetime.

“Success is not solely determined by education but by a clear vision and strategic planning. If everything you stand for dies when you die, you have not lived effectively,” he stated.

Maduka stressed that a legacy requires successors who are not only willing but hungry for success. “You can never teach anyone to be hungry. It must come instinctively,” he added.

Dr. Okey Nwuke, Director of the Lagos Business School Family Business Initiative, emphasised the need for long-term sustainability through stewardship rather than mere leadership.

“The real challenge is ensuring that businesses outlive their founders. Stewardship, not just leadership, is key to continuity,” he said.

The conference highlighted the need for African family businesses to adopt structured succession planning to drive economic growth and sustainability

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