Africa must depend less on foreign aid, invest own capital, says Elumelu
Businessman and Chairman of Heirs Holdings and Transcorp Group, Tony Elumelu, has urged African countries to mobilise domestic capital and invest in their economies rather than depend on foreign aid to drive development.
Elumelu made the call on Friday while delivering the keynote address at the 25th WIMBIZ Annual Conference held at Eko Hotel and Suites, Victoria Island, Lagos.
Speaking on the theme, “The Geography of Opportunity: Why The World Needs What Africa Has”, he said Africa had the human and natural resources to become one of the world’s most prosperous regions but must address challenges preventing it from realising its potential.
He identified reliable electricity, local value creation and capital mobilisation as key priorities, stressing that industrialisation would remain difficult without adequate power supply. “Fix electricity, and Africa will take off,” he said.
The businessman urged African countries to move beyond exporting raw materials such as lithium, cocoa and crude oil, calling for greater investment in local processing, manufacturing and the production of finished goods. He also urged pension funds, insurance companies and banks to invest more in African businesses, insisting that the continent’s future should be built on investment and trade rather than foreign aid.
Elumelu called for stronger trade relations among African countries, lamenting that it remained easier to move goods from Lagos to Liverpool than from Lagos to Luanda. He said intra-African trade remained below 20 per cent despite the establishment of the African Continental Free Trade Area, adding that better infrastructure, payment systems and customs procedures were needed to unlock its potential.
He also highlighted the Tony Elumelu Foundation’s support for young entrepreneurs, disclosing that more than $120 million had been invested in seed capital over 15 years to support 24,633 entrepreneurs across all 54 African countries. He said women accounted for 48 per cent of the beneficiaries, who had collectively created more than 1.5 million jobs and generated over $4.2 billion in revenue.
The businessman urged African governments to strengthen institutions, protect investments, honour contracts and ensure accountability, while calling on private sector leaders to embrace good governance. He said the continent’s development must be driven by Africans, particularly women and young entrepreneurs, declaring that foreign donors and international partners could support Africa but could not develop it on behalf of its people.
