Tony Elumelu, Group Chairman of Heirs Holdings, has advocated for a fundamental shift in Africa's development model, emphasizing trade, investment, entrepreneurship, and private sector-led growth over dependence on foreign aid. Speaking at a fireside chat on the sidelines of the United Nations General Assembly, Elumelu argued that Africans must drive the continent's economic transformation. The session, titled the "Darryl G. Behrman Lecture on Africa Policy," examined Africa's changing role in the global economy and the future of US-Africa relations.
Elumelu urged global institutional investors and international policy partners to view Africa as a lucrative destination for commercial investment and private-sector partnerships, rather than an aid-dependent continent. He challenged international investors to close the gap between perceived risk and operational reality when assessing African markets, highlighting the economic dynamism across the continent's 54 distinct nations. According to Elumelu, industrialists and global capital can find high investment returns in Africa by forming strategic co-investment partnerships with credible local business leaders.
Elumelu reaffirmed his core economic philosophy of Africapitalism, emphasizing that Africa's long-term economic transformation must be driven primarily by its own private sector. He noted that while aid programs can provide short-term relief, they cannot build sustainable industries or replace the structural impact of deploying domestic capital. Elumelu called on foreign venture capital firms, pension funds, and development finance institutions to work directly with local financial institutions to fund critical infrastructure and power key trade corridors.
The businessman highlighted the importance of addressing youth unemployment, describing young African entrepreneurs as a crucial pillar of continental security and global stability. Elumelu drew on the work of the Tony Elumelu Foundation, which committed $100 million to empower young African entrepreneurs, showing how providing $5,000 in non-refundable seed capital alongside business training can catalyse organic job creation. He urged international philanthropies, multilateral agencies, and corporations to help scale these youth-led micro, small, and medium enterprises.
Elumelu also advocated for a pragmatic and equitable approach to the global green transition, emphasizing that Africa must be allowed to use its abundant natural gas reserves as a critical transition fuel. With over 600 million Africans lacking basic access to electricity, Elumelu stressed that discussions of industrial growth or digital transformation remain difficult without reliable baseline power. He asserted that Africa must develop long-term renewable power infrastructure for tomorrow while powering local industries and stabilising electricity grids today.
Regarding trade partnerships, particularly between the United States and African economies, Elumelu insisted that future engagement must move beyond traditional concessionary frameworks. He encouraged the African Growth and Opportunity Act while emphasising the need to directly address the cost of getting African products produced and delivered to U.S. markets. Elumelu suggested that bilateral trade arrangements should prioritise supply-chain integration, domestic manufacturing capacity, and the removal of regulatory bottlenecks that hinder intra-African commerce.
Concluding the session, Elumelu reminded the audience that fostering economic prosperity across Africa is ultimately a shared global interest, stating that poverty anywhere remains a direct threat to economic peace and security everywhere. The session was moderated by Michael Froman, President of the Council on Foreign Relations.
Key points
- Elumelu advocates for Africapitalism to drive Africa's economic transformation
- He urges global investors to view Africa as a lucrative destination for commercial investment
- Elumelu emphasizes the need for a pragmatic approach to the global green transition
