UBA Group Chairman calls for fundamental shift in Africa’s development model

Tony Elumelu, Chairman of Heirs Holdings, has called for a major change in how Africa develops. He believes the continent should shift away from relying on foreign aid, and instead focus on trade, investment, entrepreneurship and growth driven by the private sector. This idea was shared during a discussion at the United Nations General Assembly in New York.

The discussion, called the "Darryl G. Behrman Lecture on Africa Policy," explored topics like Africa's role in the global economy, entrepreneurship, energy security, private sector development, and the future of US-Africa relations. Elumelu argued that Africans must take more control of the continent's economic changes, while global investors and international policymakers should stop seeing Africa as a place that only needs aid.

Instead, they should see Africa as a place with commercial investment opportunities that can bring high returns through partnerships with private sector businesses. He also warned that seeing Africa as a single risky market fails to recognize the continent's economic diversity and the many opportunities it offers. Elumelu reiterated his belief in "Africapitalism," which stresses private sector-led development and using business to help Africa transform its economy.

He emphasized that while aid programs can give temporary relief, they cannot build lasting industries or replace the impact of investing money from within the country. He called on international venture capital firms, pension funds, and development finance institutions to work together with local financial institutions to fund important infrastructure and help important trade routes.

Elumelu highlighted the importance of young entrepreneurs in Africa's economic growth, security, and global stability. He said that addressing youth unemployment is crucial for reducing people moving to other countries illegally and stopping social problems. Drawing on the work of his own Tony Elumelu Foundation, which has given $100 million to help young African entrepreneurs, Elumelu said that giving $5,000 in non-returnable seed money along with business training could help create jobs in both city and countryside areas.

He urged international charities, big groups, and companies to help support the growth of small, medium, and big businesses started by young people across Africa. When it comes to having enough energy and dealing with climate problems, Elumelu wants a sensible and fair way to change how the world uses energy. He noted that many people in Africa still don't have electricity, and without enough power, it will be hard to make businesses grow and keep electricity running.

Elumelu suggested using Africa's big natural gas supplies as a temporary energy source to help industries and keep electricity flowing, while also investing in new ways to get electricity from renewable sources. On the topic of how the United States and Africa trade with each other, Elumelu said that future relationships should not just follow old rules that give special treatment.

While still supporting the African Growth and Opportunity Act (AGOA), he said that we should also think about how much it costs to make and send goods from Africa to the United States. He also called for trade deals between countries that will help make it easier to sell African goods in the United States, help businesses make things in the United States, and fix problems that make it hard for countries in Africa to trade with each other.

Elumelu said that making Africa richer is good for everyone around the world. He said that if lots of people are poor in one place, it can cause problems in other parts of the world too.