Chairman of Heirs Holdings, Tony Elumelu, has called for a fundamental shift in Africa’s development model from dependence on foreign aid to investment, trade, entrepreneurship and private sector-led growth.
Gatekeepers News reports that Elumelu made the call during a fireside chat held on the sidelines of the United Nations General Assembly (UNGA).
The session, titled the “Darryl G. Behrman Lecture on Africa Policy,” was moderated by Michael Froman, president of the Council on Foreign Relations (CFR).
The discussion focused on Africa’s evolving role in the global economy, entrepreneurship, energy security, private sector development and the future of US-Africa relations.
Elumelu said Africans must increasingly take the lead in driving the continent’s economic transformation, while international investors and policy partners should move beyond perceptions of Africa as an aid-dependent region.
He urged global investors to view Africa as a destination for commercial investment and private sector partnerships, rather than primarily as a recipient of development assistance.
The businessman also challenged international investors to narrow the gap between perceived risks and operational realities when assessing African markets.
“Treating Africa as a monolithic, high-risk entity overlooks the immense economic dynamism across its 54 distinct nations,” he said.
Elumelu said industrialists and global investors seeking growth opportunities could find some of the world’s highest investment returns in Africa, particularly through strategic co-investment partnerships with credible local business leaders who understand the continent’s markets.
He also reaffirmed his advocacy of Africapitalism, an economic philosophy that emphasises the role of the private sector in driving Africa’s long-term development.
“While aid programs can provide short-term relief, they cannot build sustainable industries or replace the structural impact of deploying domestic capital,” Elumelu said.
He called on foreign venture capital firms, pension funds and development finance institutions to partner directly with local financial institutions to finance critical infrastructure and strengthen key trade corridors.
Youth unemployment
Addressing Africa’s growing youth population, Elumelu described young African entrepreneurs as a critical pillar of continental security and global stability.
He said tackling youth unemployment should be treated as an urgent priority to reduce irregular migration and prevent social instability.
Elumelu cited the work of the Tony Elumelu Foundation, which has committed $100 million to empowering young African entrepreneurs.
According to him, providing entrepreneurs with $5,000 in non-refundable seed capital, alongside business training, could help catalyse job creation in both rural and urban communities.
He urged international philanthropies, multilateral organisations and corporations to support the expansion of youth-led micro, small and medium-sized enterprises across the continent.
Energy security
On energy security and climate policy, Elumelu advocated a pragmatic and equitable approach to the global transition to cleaner energy.
“With more than 600 million Africans still lacking basic access to electricity, discussions of industrial growth or digital transformation remain difficult without reliable baseline power,” he said.
The Heirs Holdings chairman argued that African countries should be allowed to use their natural gas reserves as a transition fuel to power industries and stabilise electricity grids while they develop long-term renewable energy infrastructure.
US-Africa trade
On trade relations between the United States and African economies, Elumelu said future partnerships should move beyond traditional concessionary arrangements.
He expressed support for the African Growth and Opportunity Act (AGOA), while urging greater focus on the cost of producing and delivering African goods to US markets.
He said the implementation of the African Continental Free Trade Area (AfCFTA) should be accompanied by stronger supply-chain integration, expanded domestic manufacturing capacity and the removal of regulatory barriers restricting intra-African trade.
Elumelu concluded that promoting economic prosperity across Africa is in the broader interest of the international community.
“Poverty anywhere remains a direct threat to economic peace and security everywhere.”
