The Group Chairman of Heirs Holdings and Transcorp, Tony Elumelu, has called on African banks to mobilise domestic savings and deepen cross-border financing to unlock the continent’s economic potential, strengthen indigenous businesses and accelerate regional trade.
Elumelu said Africa must build strong financial institutions capable of financing local businesses, supporting trade across borders and funding investments in critical sectors rather than relying excessively on foreign aid and external capital.
He made the call while delivering the keynote address at the 25th WIMBIZ Annual Conference in Lagos, where he identified electricity, value addition, capital mobilisation and intra-African trade as essential requirements for transforming the continent’s economic prospects.
Speaking on the theme, “The Geography of Opportunity: Why the World Needs What Africa Has,” Elumelu argued that Africa’s ability to convert its vast natural and human resources into prosperity would depend largely on its capacity to develop indigenous financing structures and create an enabling business environment.
According to him, the future of Africa’s development lies in investment and trade rather than aid, stressing that African pension funds, insurance companies, banks and family offices must play a greater role in financing businesses across the continent.
“The most important thing Africa needs to build in the next decade is African capital that invests in Africa. Our pension funds, our insurers, our banks, our family offices.
“We must demonstrate that African capital can build African businesses that compete anywhere in the world,” he said.
The businessman explained that domestic capital formation depends on savings, which can only grow in an environment characterised by consistent policies, trusted financial institutions and favourable investment conditions.
He maintained that strengthening African financial institutions would enable countries across the continent to finance their own development priorities and reduce dependence on external funding.
Drawing from his experience leading the expansion of United Bank for Africa (UBA) across 20 African countries, Elumelu said the continent must develop financial institutions capable of supporting businesses seeking opportunities beyond their domestic markets.
He noted that African banks should finance cross-border expansion, while manufacturers and technology companies should develop regional supply chains and solutions capable of serving the wider continental market.
Elumelu also warned that the African Continental Free Trade Area (AfCFTA) would remain largely theoretical without adequate financial, physical and institutional infrastructure to facilitate trade among African countries.
According to him, it is currently easier to ship goods from Lagos to Liverpool than from Lagos to Luanda, while less than one-fifth of Africa’s trade takes place within the continent.
He stressed that effective regional integration would require substantial investments in roads, railways, ports, payment systems, efficient customs procedures and predictable regulations.
“A continent that cannot trade efficiently with itself will struggle to negotiate effectively with the rest of the world,” he said.
The Heirs Holdings chairman further emphasised the importance of reliable electricity and local processing of raw materials, arguing that Africa must move beyond exporting unprocessed commodities such as lithium, cocoa and crude oil.
He maintained that a reliable electricity supply was essential for industrialisation, manufacturing and the development of the artificial intelligence economy.
Elumelu added that Africa’s young population could become a major economic advantage if supported by adequate infrastructure and investment opportunities.
Speaking on the role of private capital in economic development, he cited investments in Seplat Energy and the proposed initial public offering of Dangote Refinery as examples of growing African participation in strategic businesses.
He said investment in Seplat Energy had helped create value for African investors, noting that the company’s share price had risen from £3 to £9 since the investment, while its market capitalisation stood at approximately $7 billion.
Elumelu also highlighted the contribution of the Tony Elumelu Foundation to entrepreneurship development across Africa.
He disclosed that the foundation and his wife had invested more than $120 million in 24,633 young entrepreneurs across all 54 African countries over the past 15 years.
According to him, beneficiaries of the programme had created more than 1.5 million jobs and generated over $4.2 billion in revenue, with women accounting for 48 per cent of the entrepreneurs supported.
He further revealed that 265,529 young Africans applied for the foundation’s entrepreneurship programme this year, but only 3,200 received funding, representing approximately one successful applicant out of every 83.
Elumelu said the figures demonstrated the enormous investment opportunities available across Africa and the urgent need to mobilise more domestic capital to finance viable businesses.
He also emphasised the importance of women’s participation in banking, entrepreneurship and corporate leadership, warning that excluding women from economic opportunities would undermine Africa’s competitiveness.
The businessman disclosed that UBA had eight female chief executives and senior leaders across its African operations, while the Heirs Holdings Group had eight women serving as chairpersons or chief executives across its businesses.
He cited the appointment of women to leadership positions in banking, insurance, healthcare, hospitality and energy as evidence that gender inclusion could deliver positive business results.
On improving Africa’s investment climate, Elumelu stressed that investors were primarily concerned about contract enforcement, regulatory consistency, functioning courts and reliable electricity.
He maintained that addressing these challenges, alongside strengthening domestic capital mobilisation and regional financial institutions, would help African businesses compete globally and enable the continent to realise its economic potential.
Post Title: “African Capital Must Invest In Africa” — Elumelu Urges Banks To Deepen Cross-Border Financing, Mobilise Domestic Savings By Naijaonpoint.