Africa must move away from dependence on foreign aid and build its economic future around trade, investment and private-sector growth, Chairman of Heirs Holdings, Tony Elumelu, has said.
He said the continent would struggle to achieve lasting industrialisation and create enough jobs if it continued to rely on development assistance instead of mobilising capital and building competitive businesses.
Elumelu made the call during a fireside chat at the 2026 United Nations General Assembly in New York, where he argued that Africa must take greater ownership of its economic transformation while encouraging global investors to see the continent as a commercial opportunity rather than primarily an aid destination.
The session, the “Darryl G. Behrman Lecture on Africa Policy”, was moderated by Michael Froman, President of the Council on Foreign Relations.
Elumelu said the continent’s 54 countries should not be treated as one high-risk market, noting that each has different economic conditions, opportunities and investment prospects.
He encouraged international investors to work with credible African businesses and local partners who understand the markets, saying such partnerships could help bridge the gap between perceived risk and the realities on the ground.
Capital needed for growth
According to Elumelu, Africa needs more private capital to finance the infrastructure and businesses required to support economic growth.
He called on venture capital firms, pension funds and development finance institutions to partner with African financial institutions to finance critical infrastructure and strengthen trade corridors.
He said aid could provide short-term support, but was not enough to build sustainable industries or drive the structural transformation needed across African economies.
His position is rooted in his philosophy of “Africapitalism”, which promotes private-sector-led development and greater use of business and investment to drive economic transformation.
Power remains a major barrier
Elumelu also placed energy access at the centre of Africa’s development challenge.
He noted that more than 600 million Africans still lack access to electricity, arguing that industrialisation, manufacturing and digital transformation would remain difficult without reliable power.
He called for a pragmatic approach to the energy transition, including the use of Africa’s natural gas resources as a transition fuel to support industries and stabilise electricity grids while investment in renewable energy continues.
Backing young entrepreneurs
Elumelu said Africa’s young population could become one of its biggest economic assets if more young people were given the resources to build businesses and create jobs.
He pointed to the work of the Tony Elumelu Foundation, which has committed $100 million to support African entrepreneurs.
He said providing young entrepreneurs with $5,000 in non-refundable seed capital, alongside business training, could help them establish businesses and create employment in both rural and urban communities.
He urged international philanthropies, multilateral organisations and corporations to support the expansion of youth-led micro, small and medium-sized enterprises across Africa.
He also linked youth unemployment to broader challenges, including irregular migration and social instability, arguing that creating economic opportunities for young people was essential to the continent’s security and development.
Trade must go beyond market access
On US-Africa trade, Elumelu said future partnerships should focus on building stronger commercial relationships rather than relying mainly on concessionary arrangements.
While supporting the African Growth and Opportunity Act, he said greater attention must be paid to the cost of producing and transporting African goods to US markets.
He also called for bilateral trade arrangements that support supply-chain integration and domestic manufacturing, alongside efforts to remove regulatory barriers that continue to limit intra-African trade.
With the African Continental Free Trade Area creating a larger continental market, he said African businesses needed the infrastructure, financing and policy environment to produce at scale and compete both within Africa and globally.
Changing the perception of Africa
Elumelu also challenged international investors to reconsider how they assess African markets.
He said treating the continent as a single investment risk overlooks the differences and opportunities across its countries.
He argued that global capital seeking growth could find significant opportunities in Africa when investors work with credible local business leaders who understand the operating environment.
For Elumelu, the long-term objective is to move Africa from being viewed primarily as a recipient of aid to becoming a stronger producer, trading partner and investment destination.
He said greater economic prosperity in Africa would also serve the interests of the global economy, as persistent poverty and economic exclusion can have wider consequences for stability and security.
