Tony Elumelu, Chairman of UBA Group, has called for the urgent mobilisation of Africa’s estimated $4 trillion in domestic capital to fund infrastructure and development, stressing that the continent must solve its challenges without further burdening government budgets.
Speaking at the IMF/World Bank Meetings on Wednesday, Elumelu argued that unlocking this local capital through smart public-private partnerships is the key to closing Africa’s massive energy poverty and digital infrastructure gaps.
The Case for Local Investment
Elumelu highlighted that relying on domestic savings is a fiscally responsible way to address Africa’s pressing needs, such as:
- Energy Poverty: Over
50 per cent of the population still lacks access to electricity, significantly impeding productivity.
- Youth Potential: The continent’s vast, creative, and energetic youth population (over 60 per cent
under 30) is held back by “significant capital constraints.”
Requirements for Unlocking Capital
To move this domestic money into productive investments, Elumelu stressed the need for two critical elements:
- Trust and Accountability: Governments must provide transparency and accountability to build private sector trust. This ensures that local savings are channeled efficiently into necessary projects.
- Enabling Environment: Governments must create the right environment for private capital to thrive and work for the people, ensuring “inclusion is deliberate” and that digital and economic prosperity is democratized.
Ultimately, Elumelu concluded that utilising local capital is essential for improving productivity, increasing youth employment, and allowing Africa to become a stronger contributor to global economic growth.
