A family business can be profitable and still be vulnerable if too much authority, knowledge and customer trust sit with one founder.
Succession is not a single handover. It involves at least three separate questions: who will own the company, who will manage it and how major decisions will be made. The answers do not have to be the same person.
Problems often surface when planning is delayed. Family members may have different expectations about employment, dividends or control. Senior managers may not know who has authority during a crisis. Banks, suppliers and customers may hesitate if contracts and relationships depend on the founder alone.
A practical plan begins with governance. The company should document decision rights, board responsibilities and the process for appointing or removing executives. Shareholder agreements, wills, insurance and estate arrangements should be reviewed with qualified legal and tax advisers in each relevant jurisdiction.
Leadership development is equally important. A potential successor needs real operating responsibility, measurable goals and feedback. If no family member is ready or interested, the board can consider an external chief executive while ownership remains with the family.
The transition should also be tested. Founders can step back from selected decisions, allow managers to lead important negotiations and confirm that financial controls work without informal approval. Gaps are easier to fix before an emergency.
Communication matters, but confidentiality still has a place. Family members, executives and key partners need enough information to understand the process and timing. Unclear promises can be more damaging than an honest decision.
There is no reliable basis for describing this as a single “$1 trillion crisis” across Africa. The scale differs by company and market. The risk is nevertheless real: without a plan, a healthy business can lose value during a preventable leadership dispute.
Source
PwC, Global Family Business Survey: https://www.pwc.com/gx/en/services/family-business/family-business-survey.html