Nigerian billionaire Tony Elumelu says Africa cannot build economic growth on aid

Nigerian billionaire businessman and philanthropist Tony Elumelu said Africa’s economic transformation cannot be built on aid, arguing that private capital raised and deployed on the continent must finance industries, infrastructure and jobs. He made the case on the sidelines of the United Nations General Assembly during the Darryl G. Behrman Lecture on Africa Policy.

Speaking in a session moderated by Michael Froman, president of the Council on Foreign Relations, Elumelu said aid can provide short-term relief but cannot create sustainable industries or replace domestic capital. He also argued that investors often misprice Africa by treating 54 distinct economies as one high-risk market, obscuring opportunities available to those with local expertise.

Elumelu urged foreign venture capital firms, pension funds and development finance institutions to partner directly with African financial institutions, particularly to finance infrastructure and trade corridors. He said investors willing to work alongside credible local partners can better understand individual markets and potentially access stronger returns while helping address the capital shortages that constrain growth.

Youth jobs take center stage

Young entrepreneurs, Elumelu said, are central to Africa’s economic and social stability. He described youth unemployment as an urgent issue, linking job creation to efforts to reduce irregular migration and prevent social instability. His foundation has committed more than $120 million to entrepreneurship, including nonrefundable seed capital and business training for young Africans.

The Tony Elumelu Foundation provides $5,000 in nonrefundable seed capital to selected entrepreneurs, alongside training designed to help them build sustainable businesses. Elumelu said the model can create jobs in both rural and urban communities, and called on philanthropies, multilateral agencies and corporations to help expand financing for businesses led by young Africans.

Energy was another focus of Elumelu’s argument. More than 600 million Africans still lack reliable electricity, he said, making sustained industrialization and digital growth difficult. He argued that African countries should be able to use natural gas as a transition fuel to power industry and stabilize electricity grids while expanding renewable energy capacity over time.

Energy and trade intersect

On trade, Elumelu backed the African Growth and Opportunity Act while arguing that future arrangements with the United States should pay greater attention to the cost of producing African goods and delivering them to American consumers. As the African Continental Free Trade Area develops, he said trade policy should focus on supply-chain integration, manufacturing and removing regulatory barriers.

Elumelu said stronger links between African economies could help businesses scale beyond national borders, but warned that regulatory bottlenecks and weak infrastructure continue to raise the cost of moving goods. He closed by arguing that Africa’s economic challenges have consequences beyond the continent, saying poverty in one region can threaten economic peace and security elsewhere.

Elumelu chairs Heirs Holdings, United Bank for Africa and Transcorp and has spent more than a decade promoting Africapitalism, his view that private enterprise should play a leading role in Africa’s development. His business interests include energy, where Heirs Holdings has built a major position across the continent’s oil and gas industry.

Foundation marks 15 years

The comments came as the Tony Elumelu Foundation released its 15-year impact report, highlighting the scale of its entrepreneurship program. Elumelu said the foundation has funded 24,633 entrepreneurs across all 54 African countries, deploying more than $120 million and supporting businesses that he said have created 1.5 million jobs and generated $4.2 billion in revenue.

In a recent LinkedIn post, Elumelu said the foundation began with a belief that young Africans with viable ideas needed capital and support rather than charity. He said the latest figures show how entrepreneurship can drive economic opportunity, while acknowledging that the work is unfinished and that the foundation plans to expand its reach.

Elumelu said the report, which he described as independently verified and rigorously researched, reflects his broader belief that opportunity can be widened through entrepreneurship. His comments at the U.N. gathering returned to the same proposition: Africa needs more capital invested in productive businesses, stronger infrastructure and policies that allow companies to trade and grow.