Elumelu Advocates Private Sector as Key Driver of Economic Growth

Renowned entrepreneur and Chairman of Heirs Holdings, Tony O. Elumelu, has reaffirmed his belief that the private sector remains the most powerful engine for driving sustainable economic growth and development across Africa. Speaking at a recent high-level economic forum in Lagos, Elumelu emphasized that empowering entrepreneurs and strengthening private sector institutions are essential for creating jobs, boosting productivity, and reducing poverty on the continent.

Elumelu, who is also the founder of the Tony Elumelu Foundation (TEF), stated that the government alone cannot achieve broad-based economic transformation without the strategic involvement of the private sector. He urged policymakers to create a more enabling environment that encourages business innovation, investment, and competitiveness.

“The private sector has the capacity to transform Africa,” he said. “When businesses thrive, they create employment, generate wealth, and contribute taxes that fund infrastructure and social services. The future of our economy depends on how we support entrepreneurs and build resilient enterprises that can compete globally.”

Highlighting the need for collaboration between government and private enterprises, Elumelu called for consistent policies that promote investment, ease of doing business, and access to finance for small and medium-sized enterprises (SMEs). He explained that the foundation for economic progress lies in policies that stimulate entrepreneurship and ensure inclusive participation across all sectors.

Elumelu also emphasized that Africa’s population growth presents both a challenge and an opportunity. With millions of young people entering the labor market annually, he stressed that job creation through the private sector is the most sustainable way to harness the continent’s demographic dividend. “Our young people are full of energy, innovation, and creativity,” he noted. “We must channel these attributes into productive ventures that contribute to national development.”

Through his foundation, Elumelu has been at the forefront of empowering African entrepreneurs. The Tony Elumelu Foundation Entrepreneurship Programme (TEEP) has supported over 20,000 young business owners across all 54 African countries, providing seed capital, mentorship, and capacity-building opportunities. He said the success of these entrepreneurs demonstrates the transformative power of private investment in human capital.

He added that African governments must move from policy pronouncements to action by implementing reforms that foster investor confidence and improve infrastructure, particularly in energy, transport, and digital connectivity. “Investors need predictability and trust,” Elumelu said. “If we want sustainable growth, we must eliminate bureaucratic bottlenecks, ensure regulatory consistency, and create a transparent investment environment.”

Speaking further, the billionaire businessman underscored the importance of public-private partnerships (PPPs) in addressing Africa’s infrastructure deficit. He cited examples of successful collaborations between his company, Transcorp Group, and the Nigerian government in the power and hospitality sectors as models for future engagement. “Partnerships between the public and private sectors can deliver the infrastructure that Africa needs to unlock economic potential,” he explained.

Elumelu’s remarks come at a time when Nigeria and other African nations face economic headwinds, including inflation, exchange rate volatility, and energy shortages. He urged leaders to prioritize the private sector in their policy frameworks as the catalyst for recovery and long-term prosperity. “Government policies should be business-friendly,” he asserted. “When entrepreneurs succeed, the entire nation benefits.”

Analysts have echoed Elumelu’s position, noting that sustainable growth can only be achieved through private investment, innovation, and productivity. Economic analyst Dr. Ifeanyi Ude said, “The government must provide the framework, but the private sector must drive execution. The two must work hand in hand to deliver development outcomes.”

In recent years, Elumelu’s advocacy for Africapitalism — an economic philosophy that promotes private sector-led growth driven by long-term investments in key sectors — has gained international recognition. He reiterated that Africans must take responsibility for transforming their economies through entrepreneurship and strategic investments rather than relying on foreign aid.

“We must move away from aid dependency and embrace investment-led development,” Elumelu said. “Africapitalism is about creating economic value while driving social impact. It is about empowering individuals and businesses to solve problems, create wealth, and build sustainable communities.”

He further encouraged financial institutions to support SMEs, describing them as the backbone of Africa’s economy. “Access to affordable finance remains a major obstacle for many entrepreneurs. Banks and investors must see beyond short-term profits and provide long-term funding that enables businesses to grow and scale,” he added.

Elumelu also called on regional bodies such as the African Union (AU) and the African Continental Free Trade Area (AfCFTA) Secretariat to promote policies that enable intra-African trade and industrialization. He argued that breaking down trade barriers and encouraging cross-border collaboration would enhance competitiveness and strengthen the continent’s economic resilience.

“As Africans, we must trade more with one another. The AfCFTA presents a huge opportunity to integrate our markets and create value chains that support industrial growth,” he said. “But this will only happen if we prioritize local production and support African enterprises.”

Elumelu’s comments reinforce his long-standing vision of a self-reliant Africa, where businesses drive prosperity and communities benefit from inclusive growth. He maintained that with the right leadership, strong institutions, and a thriving private sector, Africa can achieve sustainable economic transformation.

“The message is clear,” Elumelu concluded. “Governments must see the private sector as partners in progress, not competitors. Together, we can unlock the continent’s potential and build a future of shared prosperity.”