Nigerian businessman Tony Elumelu has transformed United Bank for Africa (UBA) into one of the continent’s leading financial institutions while championing an economic philosophy he calls Africapitalism. Through his investment company Heirs Holdings and his philanthropic arm, the Tony Elumelu Foundation (TEF), Elumelu has become a symbol of how Africa’s private sector can drive development. In 2015, TEF launched a $100 million program to support 10,000 young African entrepreneurs, underscoring his belief in business as a tool for empowerment.
The Birth of Africapitalism
Africapitalism is not an academic theory born in university halls. Coined by Elumelu in 2012, it’s a practical philosophy rooted in his business experience: the idea that long-term private sector investments should create both economic prosperity and social good.
Unlike traditional capitalist models or external aid-driven approaches, Africapitalism calls on African entrepreneurs to take charge of value-added sectors, build industries locally, and reinvest profits into their communities. As Elumelu puts it:
“The era of aid is fading. What Africa needs most is support for businesses that can transform economies, create jobs, and uplift societies.”
This concept gained international attention after The Guardian published the question: “Can Africapitalism save the continent?” in 2013, sparking global debate.
Doing Well by Doing Good
Central to Africapitalism is Elumelu’s mantra of “doing well and doing good”—investing profitably while delivering social impact. His power sector investment illustrates this dual approach:
“When Heirs Holdings acquired a Nigerian power plant, its capacity grew from 150 MW to over 600 MW, improving electrification for schools, hospitals, and businesses. It’s a profitable enterprise, but also a driver of social development.”
This fusion of business success and social benefit embodies his vision of sustainable African development powered by entrepreneurship rather than aid dependency.
From Banker to Billionaire
Elumelu’s rise began in the deregulated Nigerian banking sector of the 1980s. In 1997, he joined a group of investors who acquired a failing institution, transforming it into Standard Trust Bank, where, at just 33, he became CEO. His leadership catapulted it into Nigeria’s top five banks. A later merger with UBA expanded its reach into 20 African countries plus branches in London, Paris, and New York.
Global Recognition
Elumelu’s influence extends far beyond banking. He has collaborated with economists like Michael Porter, launched The Africapitalist newsletter, and written on private sector-driven development, including his widely circulated essay, “Obama the Africapitalist.” His advocacy earned him a place in Time magazine’s 2020 list of the 100 most influential people, with fellow billionaire Aliko Dangote praising his relentless drive and vision.
Critics and Legacy
Some view Africapitalism as savvy branding, while others see it as overly idealistic. The Guardian notes its challenge: merging profit motives with social responsibility. Yet, Elumelu insists it is the path to Africa’s industrial revolution:
“Africapitalism is the promise of sustainable development for Africa—driven by entrepreneurs with vision and purpose.”
Through UBA, Heirs Holdings, and TEF, Tony Elumelu has become a leading advocate for an Africa where business builds not only wealth but also lasting social impact. His journey from banker to billionaire-philanthropist exemplifies how private enterprise can fuel a new era of African-led economic transformation.
