Tony Elumelu Urges Shift From Aid to Investment in Africa

During the 81st United Nations General Assembly in New York, Tony Elumelu, Chairman of Heirs Holdings, called for a fundamental shift in Africa's development model. Speaking at the Council on Foreign Relations' Darryl G. Behrman Lecture on Africa Policy, Elumelu urged global investors and policy partners to abandon foreign aid dependency in favor of viewing the continent as a commercial investment destination.

Elumelu advocated for "Africapitalism," a philosophy emphasizing private sector-led growth and strategic co-investment partnerships with local leaders to bridge the gap between perceived risks and operational realities. He argued that sustainable growth must be driven by trade, entrepreneurship, and domestic private capital rather than external assistance.

Addressing infrastructure and stability, Elumelu proposed a pragmatic energy transition using natural gas reserves to provide electricity to the 600 million Africans currently without power. He also emphasized that providing seed capital and training for youth entrepreneurs is essential for global stability and the reduction of irregular migration.

Regarding U.S.-Africa relations, Elumelu supported the African Growth and Opportunity Act but called for its modernization. He urged the removal of regulatory bottlenecks and the reduction of production and freight costs to enhance supply-chain integration and trade.