Founder of the Tony Elumelu Foundation (TEF) and Chairman, United Bank for Africa (UBA) Tony O. Elumelu, has urged global portfolio investors to stop directing aids to Africa. He said what Africa needs from the world is investments.
He therefore charged global investors and businesses to look towards Africa and Africa businesses for long term investment opportunities.
Elumelu who is also Chairman of Heirs Holdings stated
this in a speech delivered at the “Ambition Africa” conference organised by the
France Invest Africa Club in Paris, France.
The French Minister of Economy and Finance, Bruno Le Maire, while introducing Tony
Elumelu to the audience, commended Elumelu’s stance on strengthening the SMEs
in Africa to catalyse development.
He said France will continue to position itself and direct investment towards Africa to end the cycle of poverty and to accelerate development globally.
“We share
the same ambition in Supporting African SMEs and entrepreneurs as this is
essential for the economic development of Africa,” he said, referring to
Elumelu’s passion to create wealth on the African continent.
Reiterating the stance to partner with Africa on long-term investments, Mr. Le
Maire said; “We will ensure that investments in Africa are sustainable,
exemplary and environmentally friendly. We want to go fast, go quickly in the
race against poverty and renunciation, throughout the continent”.
Tony Elumelu on his part stated “We need to do much better and be much smarter
in channelling funds to emerging markets. These markets present huge
opportunities – as well as risks for investors, but investors need to fulfill a
critical need to catalyse and improve the economy. We salute companies like
Total, Bouygues, Accor, Orange, and Bolloré as well as others who have accepted
this challenge, but there is room for many more” he said.
Elumelu stressed the importance of private equity inflow into Africa, with a
focus on investing in small and medium scale businesses, the lifeblood of the
African economy.
He stated that Africa has the youngest workforce
in the world, with over 60% of its population below the age of 25. This he said
was a potential demographic boom that could be turned around to become the
continent’s greatest asset if the youths have jobs and economic opportunities.
According to him: “Africans do not need aid. Rather, our young people need
investments’.
“Private equity is a force for positive development in Africa. We have a large
youth population, who are eager and innovative. They are looking at solutions
to problems in their communities but are hampered by the access to capital and
investment, mentoring and training. When done right, this kind of investment
can bring not just capital but can also strengthen job creation, corporate
governance and help improve sustainable business practices”.
He cited the impact and growth rate of the beneficiaries of the Tony Elumelu
Foundation as evidence of the potential of SMEs in Africa today. His Foundation
has endowed $100 million dollars of his family wealth, to fund over 10000
African entrepreneurs in ten years.
Mr. Elumelu commended The French President, Emmanuel Macron’s initiatives for
strengthening the relationship between France and Africa and concluded by
inviting investors to consider investing in Africa for the long term.
“The key phrase here is long term investment – no one should come to Africa for
short term gain. The time is now to invest in Africa. Private equity has to be
part of it. We need it for all,” he concluded.