Private sector must lead Africa’s economic transformation, says Tony Elumelu

Tony Elumelu, chairman of the United Bank for Africa (UBA), says the continent’s economic future depends on private sector leadership that combines profitability with social progress.

Speaking at the 2025 Abuja Business and Investment Summit and Expo on Wednesday, Elumelu said no country has achieved sustainable prosperity without a strong and vibrant private sector.

He said the private sector drives productivity, connects markets, mobilises investment, and builds resilience.

“Across Africa, it already contributes over 70 percent of GDP and 80 percent of total employment,” the entrepreneur was quoted as saying in a statement.

Also the founder of the Tony Elumelu Foundation, he said Africa must move from dependency to self-determination by building an economy powered by innovation, enterprise, and long-term investments.

“I call it Africapitalism — the belief that the private sector must lead Africa’s transformation by investing long-term in sectors that generate both economic prosperity and social wealth,” he said.

Elumelu emphasised that true business leadership goes beyond profit-making, urging African investors to “lead with purpose” by investing in youth, skills, sustainability, and digital transformation.

“Doing well and doing good are not mutually exclusive, they are the twin foundations of Africa’s transformation,” he said.

The businessman said Heirs Holdings, which marks its 15th anniversary this year, has pursued “this philosophy through investments that create jobs, expand access to power, and improve communities”.

‘PREDICTABILITY ATTRACTS INVESTMENT’

The Heirs Holdings chair called for a stronger partnership between the public and private sectors, describing policy consistency as “the currency of investment”.

“Predictable regulation attracts long-term investment; inconsistency drives it away,” he said.

“Private capital is patient but it needs certainty.”

Elumelu said governments must provide sound macroeconomic policies, reliable infrastructure, and clear regulations, while businesses must maintain ethical standards and deliver social impact.

“When investors succeed, the nation succeeds,” he said.

On funding the continent’s growth, Elumelu advocated for “patient, purposeful, and Pan-African capital,” urging deeper domestic capital markets, fintech innovation, and better access to credit for small and medium-sized enterprises.

“If we align capital with vision, Africa will not just grow; it will thrive,” he said.

He also stressed the need to shift from extractive business models to productive ones.

“Building economies, not extracting profits — that must be the new African business ethos,” the mogul said.

“We must be architects of progress. How can we expect foreign investors to believe in us if we don’t invest in our own economy?

“Let us believe in African excellence. Let us build the Africa we deserve – prosperous, inclusive, and self-reliant.”

Calling for a continental movement of enterprise, Elumelu said Africa’s transformation “will not be written in boardrooms in New York, London, or Beijing,” but by African entrepreneurs and investors at home.