Elumelu Inspires Africapitalism For Continent’s Shared Prosperity
Tony Elumelu, the chairman of United Bank for Africa Plc, is leading a new campaign for a private-public driven effort to develop African society and its people through what he called “Africapitalism.”
The multi-billionaire businessman and Chairman of Heirs Holdings are saying that the private sector can develop Africa’s economy with its people even while making a profit in business, in such a way he likened it to “capitalism wearing a human face.”
Featuring on BBC’s Business Daily captioned “Rethinking the Role of Business in Africa,” Elumelu said “Africapitalism is not just another variant of capitalism. Africapitalism is just about saying “let’s change the way we do things, the way we operate our businesses and make sure that embedded in our business philosophy and practices and motive is also the human angle that carries society along and not just waiting to make a profit and do what they call corporate social responsibility (CSR). It should be integrated, embedded, and do both simultaneously.”
He explained that the reason he founded the Tony Elumelu Foundation in 2010 was to further the philosophy of Africapitalism by getting a dedicated vehicle that helps to further prioritize and pay attention to Africa’s young ones and our women.
According to Nigeria’s foremost economist and banker of note, Africa’s pathway to economic prosperity and social wealth lies in a synergy between the governments and the private sector investors, with the latter leading the charge in the new era of development. He is of the view that investors can make a profit and at the same time pay attention to societal needs by investing in long-term projects in the continent and creating jobs for its teeming young population.
“I believe the private sector has a role play in the development of our continent. I believe that Government is critical but more importantly, the private sector should lead in the new era of development,” Elumelu told BBC in an interview monitored by our correspondent in Lagos.
When asked what Africapitalism meant, he replied “It is an intersection of Government and Private sector coming together to develop Africa sustainably, in a manner that creates prosperity for business investors but more importantly creates jobs and economic inclusiveness. That is how to develop our continent.”
Elumelu who doubles as the Chairman of Transcorporation of Nigeria Plc believes that Africa’s capitalism is the way to build Africa, to create jobs and a happy society, and called for the coming together of the governments of various countries in Africa and the private sector investors to develop Africa sustainably, creates prosperity for business investors and more importantly that creates jobs and economic inclusiveness.
Elumelu further contended that when Africans invest in Africa, they also attract global friends to invest in Africa, stressing that it is in our self-interest to make sure that the society is also carried along, and as much as possible make everyone happy to ensure a peaceful world.
“We also understand that in the 21st century, it is in our self-interest to make sure that society is also carried along. We need a society where as much as possible everyone is happy. We want to see our young ones gainfully employed,” Elumelu, a pan-African philanthropist of note postulated.
“If you invest in electricity in Africa, for instance, transportation, or mass sanitation, you are making profit but you are also helping to alleviate poverty; you are helping to catalyze economic development.
“Profit making is not bad. What is bad is making a profit in a manner that is not acceptable by normal global standards. What you need to understand, however, is that in economics it is the private sector that creates jobs. The government cannot create jobs. If you realize this, then we should not find our private sector not making a profit.
“We should also embrace and encourage our private sector to do well because doing well in the private sector is doing well in the general society. And this is what African capitalism is all about. Let us join hands to develop Africa.”
On how governments could get involved in his scheme of Africapitalism, he said that Government must play its role by way of regulation, policy formulation, and enforcement. Then, the private sector must operate within the ambit of the law that government sets. Government should not go to bed,” he insisted.
Elumelu frowned at child labour saying that entrepreneurs need to enter the era of self-regulation, knowing what is right and doing what is right.
“We need to know that child labour is not acceptable. We need to know that labour exploitation is not good. If your people are not happy, in the 21st Century, they will not even give you the productivity that will help you earn success in business.
“So, I think that as we all get more aware and informed and know that things are changing in the world we live in, and as the market gets more competitive, it shapes our behaviours as participants in the market.
“Then, the global community has a role to play in all of this too by holding institutions, and practitioners accountable to higher standards,” said the philanthropist.
He also frowned at a huge brain drain across Africa, attributing it to the insecurity crisis and the search for better-paid jobs. “In Nigeria, for instance, many push factors are making young ones want to take the decisions some of them are taking. Insecurity is an issue, and there is a limit to what the private sector can do.
“The public sector must play its role. The private sector will complement what the public sector is doing in the area of insecurity by making sure there is more prosperity. If you have more prosperity, if you move more people out of poverty, the likelihood of insecurity begins to drop.
“Personally as an economist, I like the concept of free market. I believe that when a market is free or a market is perfect when there is a free flow of information people will make rational decisions,” Elumelu stated.
According to BBC, a survey in 2019 showed that almost 50 percent of adults in Nigeria said they planned to emigrate to Canada considered the most sought-after destination due to the significant demand for skilled labour followed by the UK, and many young Nigerians have continued to seek better opportunity outside the continent.
But Elumelu believes that there should be a reverse to this trend as technology skill sets have provided a new opportunity for Nigerians and Africans as a whole to look homeward for better working conditions in the new era of African development by Africans in business.
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