Chairman of Heirs Holdings, Tony Elumelu, has urged the international community to rethink its economic engagement with Africa by prioritising trade, investment and private-sector partnerships over traditional aid.
Elumelu made the call on Tuesday during a fireside conversation on the sidelines of the 81st United Nations General Assembly in New York.
The discussion was part of the Council on Foreign Relations’ Darryl G. Behrman Lecture on Africa Policy and was moderated by the council’s President, Michael Froman.
According to a statement made available to PUNCH Online on Wednesday, Elumelu told investors and global policy leaders that Africa’s economic transformation must be anchored on entrepreneurship, African trade and the mobilisation of private capital.
He also challenged the perception of the continent as a single investment destination characterised by uniformly high risks.
“Treating Africa as a monolithic, high-risk entity overlooks the immense economic dynamism across its 54 distinct nations,” he said.
The businessman argued that international investors could benefit from the continent’s economic opportunities by working with credible local business leaders who understand the complexities of African markets.
Reiterating his advocacy for Africapitalism, Elumelu said the African private sector must play a central role in driving economic growth and improving living standards across the continent.
He said foreign aid could provide short-term support but could not replace the long-term benefits of private investment in productive industries and infrastructure.
He therefore urged venture capital firms, pension funds and development finance institutions to partner with African financial institutions to finance critical infrastructure, particularly energy corridors and major trade hubs.
Elumelu also drew attention to the relationship between economic opportunity and security, warning that high youth unemployment could contribute to irregular migration and social unrest.
He cited the Tony Elumelu Foundation’s $100m entrepreneurship programme as an example of how private capital could support job creation.
According to him, the foundation’s provision of $5,000 in non-refundable seed capital to young entrepreneurs has demonstrated the potential of targeted funding to generate employment across African communities.
On energy, Elumelu called for a practical approach to Africa’s transition from fossil fuels to cleaner sources of power.
He noted that more than 600 million Africans still lacked access to electricity, stressing that reliable energy was essential for industrial development and digital expansion.
“Africa must be allowed to use its abundant natural gas reserves as a critical transition fuel to power local industries and stabilise electricity grids today, while simultaneously developing long-term renewable power infrastructure for tomorrow,” he said.
Elumelu further called for the review of existing commercial arrangements between Africa and the United States, including the African Growth and Opportunity Act, to make them more beneficial to African producers and exporters.
He said reducing production and transportation costs would enable African businesses to compete more effectively in global markets.
He also urged policymakers to take advantage of the African Continental Free Trade Area by strengthening regional supply chains, promoting local manufacturing and removing regulatory obstacles to cross-border trade.
Elumelu said stronger African economies would have implications beyond the continent, particularly for global economic stability and security.
“Poverty anywhere remains a direct threat to economic peace and security everywhere,” he said.
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