Tony Elumelu Urges African Banks to Mobilise Domestic Savings and Deepen Cross-Border Financing

Tony Elumelu, chairman of Heirs Holdings and Transcorp, has urged African banks to mobilise domestic savings and deepen cross-border financing as a means of unlocking the continent's economic potential and supporting business growth across Africa. He said Africa must build strong financial institutions capable of financing indigenous businesses, supporting regional trade and funding investments in critical sectors rather than relying excessively on foreign aid and external capital. Elumelu 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 critical requirements for transforming the continent's economic prospects. Speaking on the theme, The Geography of Opportunity: Why the World Needs What Africa Has, he 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. He said: 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. Elumelu, who previously led UBA's expansion across 20 African countries, said the continent must also develop financial institutions capable of supporting businesses expanding beyond their domestic markets. He noted that African banks should finance cross-border expansion, while manufacturers and technology companies should build regional supply chains and solutions that serve the wider continental market. He argued that the African Continental Free Trade Area (AfCFTA) would remain largely theoretical without adequate financial, physical and institutional infrastructure to support trade. 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 said effective regional integration required 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. Elumelu also highlighted the importance of electricity supply and local processing of raw materials, arguing that Africa must move beyond exporting unprocessed commodities such as lithium, cocoa and crude oil. He said reliable electricity was essential for industrialisation, manufacturing and the development of the artificial intelligence economy, adding that Africa's young population could become a major economic advantage if supported by adequate infrastructure. On the role of private capital in economic development, he cited investments in Seplat Energy and the proposed Dangote Refinery initial public offering as examples of growing African participation in strategic businesses. He said investment in Seplat had helped create value for African investors, noting that the company's share price had risen from 3 pounds to 9 pounds since the investment, with its market capitalisation currently at about 7 billion dollars. The businessman also highlighted the role of the Tony Elumelu Foundation in financing entrepreneurship, disclosing that the foundation and his wife had invested more than 120 million dollars in 24,633 young entrepreneurs across all 54 African countries over 15 years. He said the beneficiaries had created more than 1.5 million jobs and generated over 4.2 billion dollars in revenue, with women accounting for 48 per cent of the entrepreneurs supported. Elumelu disclosed that 265,529 young Africans applied for the foundation's entrepreneurship programme this year, but only 3,200 received funding, representing approximately one in every 83 applicants. He said the funding gap demonstrated the enormous investment opportunities available in Africa and the need for more domestic capital to support viable businesses. The Heirs Holdings chairman also stressed the importance of women's participation in banking and corporate leadership, arguing that excluding women from economic opportunities would undermine Africa's competitiveness. He 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 business results. On strengthening the investment climate, Elumelu said investors were primarily concerned about contract enforcement, regulatory consistency, functioning courts and reliable electricity.