As we can see a baobab tree has a large bulgy trank, making it impossible for one person to wrap his arm completely around it.
The proverb means that no one man has all the wisdom in this world; no one man has all the wise thoughs; no one man is all wise; no one man is always right.
It means that we all have pieces of what is called wisdom. And sharing ideas and working together, we can do exploits. In an institution, community, government, etc. if only one person is running the show, he would get stuck at some point and or he would exhaust all his wisdom and make a lot of bad decisions that would devastating to his subordinates.
This proverb discredits authoritarian style of leadership where only the leader or a few of the leadership call the shots.