Feature/OPED
Africa and Tony Elumelu’s Concept of Entrepreneurship, Philanthropy and Development
By Jerome-Mario Utomi
When Tony Elumelu, founder of the Tony Elumelu Foundation (TEF), was speaking on the topic Philanthropy and Development; Where are Africa’s Billionaires? at one of the high level seminars at the African Development Bank (AfDB) 2013 annual general meeting held at Marrakech, Morocco, he advised African billionaires to invest in developing Africa through what he tagged Africapitalism.
He said this was the solution to Africa’s development need which should augment external aid, rather than allowing the continent to solely depend on foreign aids for its development needs. His submission generated some form of intra and cross arguments among stakeholders, business analyst and policymakers.
To some, it elicited this jigsaw: if it has been said that government has no business in business, what business does the private sector have in helping government to do its business of providing quality governance vis-à-vis infrastructure and employment to the populace.
To others, it was viewed as a dangerous fiction aimed at hand twisting the high and mighty. For the rest, Tony’s call was but a mere act of playing to the gallery.
However, instead of considering or aligning with these torrents of slanted reactions, the Onitcha-Uku, Aniocha North Local Government Area, Delta state born Tony Elumelu, contrary to expectations, did something theatrical that transformed his declaration in Morocco to action.
In 2015, his foundation established an Entrepreneurship Programme for Africans, an initiative that engineers wealth creation and consolidates economic self-reliance among beneficiaries while lifting African youths; the poor and the deprived out of poverty.
In 2021 alone, the programme, going by reports, admitted approximately 5,000 beneficiaries from across 54 countries of Africa and each got a $5000 seed capital. This is in addition to rigorous business incubation, management and growth training.
This is not the only way Tony Elumelu has turned Africa as a continent to a political geography where our youth can no longer be caught unprepared when it comes to meeting the challenges of their time.
This claim becomes evident when one remembers that organizations such as; United Bank for Africa (UBA), Heirs Holdings amongst other groups where Tony holds vested interest, equally spread their wings across Africa creating tens of thousands of direct employment.
In fact, the global community, especially development organizations/agencies, thinks that the concept of philanthropy has evolved over and what Tony is doing is the best way to solve the youth unemployment problem in Africa. This partly explains the support/endorsement his foundation is receiving from these agencies.
Understandably also, aside from the truth by the global community that the war against unemployment and underdevelopment in Africa must start from within, two particular realities, in my view, stand Tony out as well as work in his favour.
First is his belief that human progress never rolls in on the wheels of inevitability but comes through the tireless effort and the persistence work of dedicated individuals who are willing to be co-workers with God. And without this hard work, time itself becomes an ally of the primitive forces of social stagnation’. The second is that as a creative leader, he enjoys intrinsic motivation that comes with personal growth, helping other people develops, taking on social causes and making a difference in the world.
With the above highlighted, the question now is: why is this piece fixated with Tony Elumelu’s private efforts at this critical time when Africa is going through the pangs of insecurity? To what extent is the insight provided by Elumelu’s model described above adequate for the socioeconomic rejuvenation of Africa?
This piece will consider these questions by examining some developmental-focused attributes that Tony and his foundation presently signpost and highlights which must not be allowed to go with the political winds. They need to be identified, critically studied in detail and useful lessons drawn by other African billionaires, captains of industries, and public office holders among others.
Most fundamental of all is Tony’s new awareness that Africa needs to do away with short-term thinking. That we should be investing over-time horizons measured in decades, rather than fiscal quarters. We must stop the practice of extracting wealth without reinvesting for growth. We should be strategically building domestic industries and manufacturing to support our national economies, and growing intra-African trade.
Without doubt, he (Elumelu) may not be wrong looking at the current happenings within the continent. It is true that the continent has overtly shown remarkable improvement in culture and civilization.
However, in my view, for the fact that after almost 60 years of independence, African countries continually look up to countries such as China for aid, covertly tells a story of a continent lacking in capacity for taking responsibility for its actions and initiatives for values.
Making it a crisis is the awareness that despite being the second most-populated continent in the world (1.2 billion people), Africa represents only 1.4% of the world manufacturing value added in the first quarter of 2020. This is in addition to the fact that Africa as a continent, only South Africa qualified as a member of BRICS, an acronym coined for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa.
From the above challenge, flows another reason why Tony Elumelu’s present efforts deserve our praise and commendation.
He has proved beyond reasonable doubt that he is a man that understands Corporate Social Responsibility as a form of corporate self-regulation integrated into a business model and functions as built-in self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit, ethical standards, and international norms-and manifested by the act of giving back to the society through adherence to the societal norms and support to the spirit of sustainable development and mutual benefit to the organization and her operational environment.
Very instructive also is his relentless effort to find a solution to youth unemployment and developing a climate of sustainable future and innovation in Africa.
Talking about youth unemployment in Nigeria, a report recently put it this way: “We are in dire straits because unemployment has diverse implications. Security wise, large unemployed youth population is a threat to the security of the few that are employed. Any transformation agenda that does not have job creation at the centre of its programme will take us nowhere.
“Youths challenge as we know cuts across, regions, religion, and tribe, and has led to the proliferation of ethnic militia/youth restiveness across Africa.”
Finally, while Elumelu teaches all with his own brand of philanthropy/charity that we are successful for others as the era where winner takes all no longer exists, this piece must as a final note underline that until other rich and well foresighted Africans like Tony start thinking ‘win-win’ for all Africans as well as recognize that charity entails selfless service where one renders assistance and walks away without waiting for any returns, Africa will continue to be viewed by civilized nations as a dark continent.
By Jerome-Mario Utomi is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), Lagos. He could be reached via [email protected]/08032725374.
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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