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Old money, young money and economic transformation
Many of the world’s most successful enterprises have been built through intergenerational wealth flow. One generation provides resources and takes investment risks while the next generation builds on that foundation and enhances the enterprise growth with renewed energy.
Augustus Nuwagaba.
By: Admin ., Journalist @New Vision
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OPINION
By Augustus Nuwagaba
The conversation about old money and young money is becoming increasingly important in Africa’s pathway to economic transformation. It is usually understood in the context of intergenerational wealth flow. Across our communities, some people spent decades building businesses, acquiring assets, and creating wealth. There are also young people with fresh ideas, ambition, and the determination to build a quick asset base of their own. Both categories are valuable to economic transformation.
Africa is the youngest continent in the world, with over 70% of its population below the age of 30, with millions of young people entering the labour market.
In Uganda, more than 700,000 young people enter the job market annually, but the challenge is how to create sufficient opportunities for this growing workforce.
What is young money? Young money is often found in start-ups, creative enterprises, and SMES and is driven by ambition, innovation, and a willingness to take risks.
What is old money? Old money brings something equally important in capital formation. These are assets that have organically been accumulated over a period of time.
As is well known, Economic transformation happens when capital moves from passive storage into productive investment. Therefore, wealth should not simply be preserved; it should be deployed to create jobs, businesses, and opportunities.
Many of the world’s most successful enterprises have been built through intergenerational wealth flow. One generation provides resources and takes investment risks while the next generation builds on that foundation and enhances the enterprise growth with renewed energy.
In Uganda, more than 700,000 young people enter the job market annually, but the challenge is how to create sufficient opportunities for this growing workforce.
What is young money? Young money is often found in start-ups, creative enterprises, and SMES and is driven by ambition, innovation, and a willingness to take risks.
What is old money? Old money brings something equally important in capital formation. These are assets that have organically been accumulated over a period of time.
As is well known, Economic transformation happens when capital moves from passive storage into productive investment. Therefore, wealth should not simply be preserved; it should be deployed to create jobs, businesses, and opportunities.
Many of the world’s most successful enterprises have been built through intergenerational wealth flow. One generation provides resources and takes investment risks while the next generation builds on that foundation and enhances the enterprise growth with renewed energy.
Imagine the impact if more established investors supported young entrepreneurs in manufacturing, commercial agriculture, housing, technology, and value addition? The result would be phenomenal, with more jobs, higher incomes, and stronger domestic industrial growth.
The true measure of wealth therefore is not how long it is held, rather the value it creates for generations ahead.
The implication of all these is that a nation prospers when wealth accumulated by one generation helps unlock opportunities for the next generation.
The writer is the Deputy Governor, Bank of Uganda
The true measure of wealth therefore is not how long it is held, rather the value it creates for generations ahead.
The implication of all these is that a nation prospers when wealth accumulated by one generation helps unlock opportunities for the next generation.
The writer is the Deputy Governor, Bank of Uganda