Tony Elumelu urges shift from foreign aid to private investment in Africa

Tony Elumelu, Chairman of Heirs Holdings, has advocated for a fundamental shift in Africa’s development model, urging a transition from foreign aid dependency toward trade, entrepreneurship, and private sector-led growth.

Speaking during the Darryl G. Behrman Lecture on Africa Policy at the United Nations General Assembly in New York, Elumelu addressed international investors and policymakers. He argued that treating Africa as a monolithic, high-risk entity ignores the economic dynamism present across its 54 distinct nations. He suggested that global institutional investors could find high returns by forming strategic co-investment partnerships with local business leaders who understand regional markets.

Elumelu reaffirmed his commitment to 'Africapitalism,' a philosophy emphasizing the African private sector's role in driving the continent's economic and social transformation. He noted that while foreign aid may provide immediate relief, it cannot substitute for the long-term structural impact of domestic investment in industrial infrastructure and productive capacity.