Elumelu: Africa Needs Increased Long-term Investments Not Aid To Drive Growth

FUNSHO AROGUNDADE

Mr. Tony O. Elumelu, Chairman of the United Bank for Africa (UBA) Plc, has implored the Africa Finance Corporation (AFC) to continue catalysing impactful projects across Africa as the continent needs increased private sector investment to drive growth.

Speaking at a recent AFC Conference in London, Elumelu said the corporation plays a critical role in Africa’s development, especially in a rapidly evolving global landscape.

The business leader emphasized that Africa requires bold, long-term investments, not aid to fuel sustainable development.

“Africa does not need aid, it needs long-term investments that generate prosperity, jobs, and growth. AFC has been instrumental in attracting global capital and bridging Africa’s infrastructure gap,” he noted.

Elumelu, the Chairman of Heirs Holdings and a founding member of the AFC, reflected on the Corporation’s evolution since its founding in 2007 and its catalytic impact, having mobilized over $10 billion across critical sectors.

He praised its strong governance, rising credit ratings, and key partnerships with private enterprises, including his own.

Elumelu detailed AFC’s financial backing for transformative projects in the power sector including facility support received by his Transcorp Group and other institutions.

“Our initial energy investment through Transcorp Group received $120 million in support from AFC funding. That was critical at the time and has since been fully repaid. A subsequent $1.1 billion transaction also saw AFC step in with $150 million in financing,” he said while also crediting AFC’s support for enabling landmark deals with companies like the RASCOM and Dangote Group.

Elumelu’s remarks reinforced the need for strong public–private collaboration and underscored AFC’s role as a strategic enabler of inclusive growth across the continent. He then urged the institution to expand its footprint.

“Without AFC, many of these projects may not have been concluded. Well done. Let’s aim for even more successes in the next decade,” Elumelu noted.

The London event themed “AFC as a Gateway to Global – Africa Trade and Investment,” convened top investors, policymakers, and development partners to explore strategies for accelerating trade and infrastructure growth across the continent.

AFC is a pan-African Multilateral Development Financial Institution established in 2007 by sovereign African states to provide pragmatic solutions to Africa’s infrastructure deficit and challenging operating environment.

Founded basically to close Africa’s infrastructure gap, AFC now has investments exceeding $11.5 billion and operates in five priority sectors: power, transport and logistics, natural resources, telecommunications, and heavy industries.

The Corporation also bridges the infrastructure investment gap through the provision of debt and equity finance, project development, technical and financial advisory services.

Its shareholders include central banks, African financial institutions, and private investors across 40 member states.