UNGA: Elumelu Call For Shift From Aid To Trade For Africa

Nigerian businessman and Chairman of Heirs Holdings, Tony Elumelu has called for a fundamental pivot in U.S.-Africa relations on Tuesday, urging global investors and international policy partners to replace traditional aid dependency with private-sector-led commercial partnerships.

In a statement made available on Wednesday, speaking during a fireside chat on the sidelines of the 81st United Nations General Assembly (UNGA) in New York, the Group Chairman of Heirs Holdings argued that sustainable economic growth on the continent must be driven primarily by African trade, entrepreneurship, and domestic private capital.

The address formed part of the Council on Foreign Relations’ Darryl G. Behrman Lecture on Africa Policy, moderated by President Michael Froman.

Addressing international investors and policy leaders, Elumelu challenged the persistent global perception of Africa as an aid-dependent region facing uniform financial risks.

Treating Africa as a monolithic, high-risk entity overlooks the immense economic dynamism across its 54 distinct nations,” Elumelu said, adding that foreign entities can unlock some of the world’s highest commercial returns by establishing strategic co-investment partnerships with credible local enterprise leaders who understand the market.

Reaffirming his commitment to Africapitalism, the economic philosophy that Africa’s private sector must drive the continent’s social and economic transformation—Elumelu noted that while foreign aid offers short-term relief, it cannot construct sustainable industrial infrastructure or replace the structural impact of domestic private investment.

He urged international venture funds, pension managers, and development finance institutions to partner directly with local African financial institutions to help finance energy corridors and core trade hubs.

Emphasizing the connection between economic development and national security, Elumelu described young African entrepreneurs as a vital pillar of global stability, cautioning that unaddressed youth unemployment directly accelerates irregular migration and social unrest.

He highlighted the operational model of the Tony Elumelu Foundation, which committed $100 million to train and fund young African entrepreneurs, demonstrating how $5,000 in non-refundable seed capital can stimulate widespread job creation across urban and rural communities.

Turning to climate policy and infrastructure, Elumelu urged global leaders to adopt a pragmatic approach to Africa’s energy transition. Noting that more than 600 million Africans currently lack access to basic electricity, he argued that discussions around industrial growth or digital scaling are impossible without consistent power generation.

“Africa must be allowed to use its abundant natural gas reserves as a critical transition fuel to power local industries and stabilise electricity grids today, while simultaneously developing long-term renewable power infrastructure for tomorrow,” Elumelu stated.

Looking ahead to bilateral relations, Elumelu called for modernizing current commercial frameworks, including the African Growth and Opportunity Act (AGOA), to focus directly on reducing production and freight costs for African exports.

He added that as implementation of the African Continental Free Trade Area (AfCFTA) progresses, future international arrangements should focus on deepening supply-chain integration, expanding local manufacturing capacity, and eliminating regulatory barriers to intra-African commerce.

Elumelu concluded the lecture by reminding attendees that boosting prosperity across Africa serves broader international security interests, stating that “poverty anywhere remains a direct threat to economic peace and security everywhere.”