African countries need to move beyond dependence on foreign aid and build stronger economies through trade, investment and entrepreneurship, Nigerian businessman Tony Elumelu has said.
Elumelu, Chairman of Heirs Holdings, made the call during a fireside discussion held on the sidelines of the 81st United Nations General Assembly in New York. The event was organised as part of the Council on Foreign Relations’ Darryl G. Behrman Lecture on Africa Policy and moderated by CFR President Michael Froman.
The businessman said Africa should increasingly be seen as a place for commercial investment rather than simply a recipient of international aid.
He argued that investors should look beyond the perception of Africa as one large, high-risk market, pointing out that the continent is made up of 54 countries with different economies, opportunities and business environments.
Elumelu encouraged international investors to work with credible African businesses and local partners who understand the markets, saying such partnerships could help unlock more investment opportunities across the continent.
Elumelu pushes private-sector-led growth
The Heirs Holdings chairman also reiterated his belief in Africapitalism, a philosophy that places private businesses and entrepreneurs at the centre of Africa’s economic development.
He said foreign aid can provide immediate assistance but cannot by itself create sustainable industries or replace long-term private investment.
He called for greater cooperation between international investors, local financial institutions and development finance organisations to fund infrastructure and strengthen important trade routes.
Youth unemployment remains a concern
Elumelu also highlighted Africa’s large youth population, describing young entrepreneurs as an important part of the continent’s economic future.
He said expanding opportunities for young people could help create jobs while reducing pressures linked to irregular migration and social instability.
He cited the work of the Tony Elumelu Foundation, which has committed $100 million to supporting young African entrepreneurs, including through non-refundable seed funding and business training.
Africa needs more reliable power
Energy was another major issue raised during the discussion.
Elumelu pointed to the large number of Africans who still lack access to electricity, saying reliable power remains essential for industrialisation and digital development.
He advocated using Africa’s natural gas resources as a transition energy source while countries continue investing in renewable energy.
Call for stronger US-Africa trade
On relations between Africa and the United States, Elumelu called for trade partnerships that go beyond traditional aid and concessionary arrangements.
He said existing frameworks such as the African Growth and Opportunity Act (AGOA) should pay greater attention to the cost of producing and transporting African goods to American markets.
He also called for stronger supply chains, increased local manufacturing and fewer regulatory barriers as the African Continental Free Trade Area continues to develop.
Elumelu’s message at UNGA was centred on greater African ownership of the continent’s economic future, with stronger trade, investment and private-sector partnerships playing a key role.
Source: Council on Foreign Relations.
