By Stellamaries Amuwa, Abuja
Tony Elumelu, the Group Chairman of Heirs Holdings, has called for a fundamental shift in Africa’s development model from dependence on foreign aid to trade, investment, entrepreneurship and private sector-led growth.
He made this known during a fireside chat on the sidelines of the United Nations General Assembly (UNGA), argued that Africans must increasingly drive Africa’s economic transformation.
The session, titled the “Darryl G. Behrman Lecture on Africa Policy,” was moderated by Michael Froman, President of the Council on Foreign Relations (CFR). It examined Africa’s changing role in the global economy, entrepreneurship, energy security, private sector development and the future of US-Africa relations.
He stated that global institutional investors and international policy partners must move beyond outdated perceptions of Africa as an aid-dependent continent and instead engage with it as a lucrative, high-return destination for commercial investment and private-sector partnerships.
Elumelu also challenged international investors to close the stark 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.
The businessman also maintained that industrialists and global capital seeking growth can find some of the world’s highest investment returns on the continent, provided foreign investors form strategic co-investment partnerships with credible local business leaders who understand the terrain.
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.
He 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.
Turning to youth demographic trends, Elumelu described young African entrepreneurs not merely as economic actors, but as a crucial pillar of continental security and global stability.
He argued that addressing youth unemployment is an urgent priority to stem irregular migration and prevent social instability.
Drawing on the work of the Tony Elumelu Foundation, which committed $100 million to empower young African entrepreneurs, Elumelu showed how providing $5,000 in non-refundable seed capital alongside business training can catalyse organic job creation across rural and urban communities.
He urged international philanthropies, multilateral agencies, and corporations to help scale these youth-led micro, small, and medium enterprises.
Addressing energy security and climate policy, Elumelu advocated a pragmatic and equitable approach to the global green transition.
He pointed out that 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.
Elumelu asserted that 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.
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 (AGOA) while emphasising the need to directly address the cost of getting African products produced and delivered to U.S. markets.
He said that as the African Continental Free Trade Area continues to gain momentum, 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.
