Group Chairman of Heirs Holdings, Tony Elumelu, has called for a fundamental shift in Africa's development model, moving away from dependence on foreign aid and towards trade, investment, entrepreneurship, and private sector-led growth. Elumelu made this call during a fireside chat on the sidelines of the United Nations General Assembly. He argued that Africans must increasingly drive Africa's economic transformation.
The session, titled the "Darryl G. Behrman Lecture on Africa Policy", examined Africa's changing role in the global economy, entrepreneurship, energy security, private sector development, and the future of US-Africa relations. The discussion was moderated by Michael Froman, President of the Council on Foreign Relations. Elumelu emphasized that global institutional investors and international policy partners must move beyond outdated perceptions of Africa as an aid-dependent continent.
Elumelu challenged international investors to close the gap between perceived risk and operational reality when assessing African markets. He stressed that treating Africa as a monolithic, high-risk entity overlooks the immense economic dynamism across its 54 distinct nations. According to Elumelu, industrialists and global capital seeking growth can find some of the world's highest investment returns on the continent.
Elumelu reaffirmed his core economic philosophy of Africapitalism, arguing 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.
Elumelu described young African entrepreneurs as a crucial pillar of continental security and global stability, rather than just economic actors. He argued that addressing youth unemployment is an urgent priority to stem irregular migration and prevent social instability. The Tony Elumelu Foundation has committed $100 million to empower young African entrepreneurs, providing $5,000 in non-refundable seed capital alongside business training.
Elumelu advocated a pragmatic and equitable approach to the global green transition, pointing out that over 600 million Africans still lack basic access to electricity. He asserted that Africa must be allowed to use its abundant natural gas reserves as a critical transition fuel to power local industries and stabilize electricity grids today, while developing long-term renewable power infrastructure for tomorrow.
Elumelu emphasized the need for future engagement between the US and African economies to move beyond traditional concessionary frameworks. He encouraged the African Growth and Opportunity Act while emphasizing the need to address the cost of getting African products produced and delivered to US markets. Elumelu concluded that fostering economic prosperity across Africa is ultimately a shared global interest.
Key points
- Elumelu calls for a shift from foreign aid to trade, investment, and entrepreneurship in Africa
- He challenges international investors to close the gap between perceived risk and operational reality in African markets
- Elumelu advocates for a pragmatic approach to the global green transition, allowing Africa to use its natural gas reserves as a transition fuel
