During the September 29-30 African Society of Association Executives fourth Annual Association Summit, AAS4, John Bosco Kalisa, CEO of the East African Business Council, spoke at length about the role of African business associations in building resilience through collaboration and networking.

Held in Kigali, the 2022 Summit theme was: "Power of Associations: Connect. Collaborate.” According to Kalisa, the role of business in social and economic development cannot be overstated. Business plays a vital role in the economic development and wealth of a country, he told Doing Business.

Success in business, he explained, translates to the economic well-being of a company and its residents through job creation and offering improved quality of life for the country’s citizens.

Here, Doing Business delves into seven aspects that relate to the importance of business in today’s economic environment and society, or the role of business associations in transforming Africa’s socio-economic landscape, as highlighted by Kalisa.

Create business opportunities

One of the main reasons for the growth of business associations is that they provide business opportunities for their members. Providing contacts with companies in a specific region or around the world, business associations are one of the best information and cooperation channels. This collaboration is a key component for strategic development.

Protection of companies’ and employees’ interests

By harnessing the collective power of their members, business associations protect the interests of the private sector by developing a dialogue with all stakeholders,

Improve business climate

Associations in the world accept the adoption of a common policy as a way to improve the business climate. The move towards this reform mentality is largely generated by the companies' demand for an organization that will protect their interests.

Provide jobs

The most important way in which membership associations help economies is through the consolidation of jobs for their membership compositions which consequently reduces poverty levels and raises standards of living.

Contribute to investment portfolio

Associations support governments in mobilizing entrepreneurs to generate income and revenues, and much of this income is often invested in the local economy.

Channel of innovation

Many business associations are hubs for innovators. Entrepreneurs, by their very nature, have a risk-taking personality. This means they are more prepared to innovate to accept, introduce or adapt new ideas and ways of doing things. This innovation drives economies forward and leads to efficiencies and breakthroughs.

Corporate Social Responsibility and economic health

As businesses and corporations grow, their role in corporate responsibility and social development can become as important as that of their contributions to economic health. It’s thought that a business association shouldn’t just serve as an economic machine, but also have stewardship in issues that affect society as a whole, such as environmental concerns, human and worker rights, support of local and national charities, schools, and a variety of initiatives that offer benefits to the community and make the quality of life higher for its members.

Meanwhile, Kalisa also shed some light on five factors for the success of business associations. He noted that acceptance of strategic planning as a process of adding value; establishment of transparent financial systems; becoming an information broker; using technology to build visibility and support; and focusing on marketing strategies to strengthen the organizational goal and message, are key.

Successful business associations increasingly see strategic planning as a necessary value in the development process, he said. The strategic plan, he noted, is a "roadmap" for achieving concrete and measurable results. "By utilizing the strategic planning mechanism, successful business associations can achieve significant results in a certain time frame,” Kalisa said.

Establishment of transparent financial systems is also crucial. In transition countries where financial systems do not function transparently even at the highest levels, business associations have struggled to conduct financial processes that are both transparent and effective, he said. "Successful associations rely on transparent financial practices to instill confidence in members and build credibility within the business community.”

Becoming an information broker, he noted, is very important because as it is often said, "information is power.”

"It has become apparent that simple access to information does not create power, but the use of this information to stimulate economic growth. Successful organizations serve as information brokers to the business community by collecting, interpreting, distributing, and evaluating data,” he said.

While technology offers exponential opportunities, Kalisa said, serious infrastructure gaps in transition and post-conflict countries have made this medium inaccessible to many business associations.

"Future success will depend on the ability to interact with members to gather information and gain support. This means that technological gaps must be bridged through coordinated assistance from governments, donors and the private sector.”

As regards the need to focus on marketing strategies to strengthen the organizational goal and message, he noted that: "It does not matter what you do if no one knows you did it." This, he said, is especially true for business associations that depend on marketing in order to gain members, volunteer support and credibility.

"Future success will depend on the ability of associations to create, sell, and evaluate demand-driven programs and services, as well as to build an organizational brand that represents excellence.”