General News
Obama the Africapitalist: Creating Private Sector Development Model
Opinion by Tony Elumelu
Last week was the first time, in my memory, that a U.S. president came to Africa with investment at the top of his agenda and prioritised meeting with the continent’s business leaders, who are the true drivers of development.
President Obama should be congratulated for his vision, and for providing the clearest proof yet that the rules of engagement with Africa are genuinely changing.
The age of aid is ending. The type of aid that will help Africa most, and should receive the highest priority, is aid for business.
I believe that the African private sector has the power to transform the continent through long-term capital investments, creating both economic prosperity and social wealth.
I call this development approach “Africapitalism,” and without a doubt, it holds the most promise for the sustainable development of Africa.
So it was refreshing to see African businesses at the table, financing and investing as partners, and making sure that Africa asserts its proper role in this opportunity.
I can already feel the impact of Obama’s new dialogue with Africa. In interviews I had with international media covering his trip, aid and corruption were not the focus, thankfully. Journalists addressed topics like “capital,” “investment,” and “trade.”
The impact of this shift will be immense.
Power is the single biggest obstacle to Africa’s development, and as such, it is the most catalytic and strategic investment anyone can make in Africa.
That is why President Obama’s focus is so timely—and so necessary. Doubling our generating capacity will double Africa’s GDP, and move us toward sustainable, domestically led growth.
Given its economic importance, the power sector also presents an attractive investment opportunity for long-term investors: there is little competition, and so the return, when it comes, will be high.
It will be similar to returns that early investors in African telecommunications realised before the sector became saturated and highly competitive.
As an investor I believe in doing well and doing good. Investing in the power sector meets both criteria.
That is why Heirs Holdings has committed $2.5 billion in investment that will expand our recently acquired Nigerian power plant at Ughelli, as well as develop new brown and green-field projects across Africa.
But filling Africa’s energy gap requires long-term investment and a huge capital outlay: it will cost $1billion just to acquire the Ughelli plant and bring it up to its full installed capacity of 1000 megawatts.
Given Africa’s huge capital requirements for the power sector, an initiative like Power Africa is essential for bringing together international investors and financial institutions to support Africa’s changing power paradigm.
Nigeria was one of only seven countries included in the program—countries at the forefront of power reform in Africa.
The world-class privatization process personally driven by President Goodluck Jonathan demonstrates that Nigeria deserves that place.
And it means that Nigeria’s power sector will have access to preferential terms and an unprecedented focus by funders looking to deliver on their public commitments under the Power Africa initiative.
Power Africa also offers a model for the 47 African countries that did not make the initial pilot list. The continent will not close its energy gap unless more African leaders urgently reform their policies and encourage this kind of private sector-led investment.
As an entrepreneur, I know that attracting capital is not and has never been the problem. I have always believed that if the policies and environment are right, investment will flow into Africa.
Investors need to know that the rule of law and the protection of property rights are assured—this is one of capital’s most important requirements.
That is why I urge global leaders like President Obama to impress upon more African leaders that investment-led development requires more investor-friendly policies.
I see a willingness in African leaders to seize these opportunities, but they need support and in some cases direction. The vision may be clear, but they may not know how to get there.
Rwandan President Paul Kagame is another positive role model for the continent—a progressive African leader who evinces both vision and commitment.
Rwanda now ranks higher than any other sub-Saharan African country on global competitiveness, and ranks third in Africa overall. President Kagame and his team have created the sort of enabling environment that investors can only dream about elsewhere in Africa.
For this reason, Heirs Holdings, Berggruen Holdings and 50 Ventures, chose Rwanda as the home for our East Africa Commodity Exchange (EAX), which will launch on July 15th.
The EAX will bring liquidity, transparency, and pricing power to farmers, while reducing lending risk to banks. The impact will be to create social wealth in local communities, and support development in the region.
Like investments in the power sector, the EAX demonstrates Africapitalism in action: highlighting the huge development role of the African private sector.
When I met with President Kagame last year, he immediately understood the significance of a commodity exchange for the East African Region, and he pushed hard to make it happen.
The Rwandan government delivered on all its promises, which enabled our investor group to deliver on our promises: the right investment team, partnering with a supportive government, will improve the lives of farmers across the region.
By following these models—of Power Africa and the EAX—we can transform the entire African economy, starting with the power sector.
One day, the 70% of Africans who don’t currently have access to consistent affordable power, will take it for granted that they can flick a switch and transform their homes, offices and schools.
And they will remember Obama’s visit. Because with private sector involvement now guaranteed, that day will soon become a reality.
In Tanzania I shook hands with an Africapitalist, who also happened to be the most powerful man in the world. It was a hugely significant event for me, a life-long African investor, and I believe Obama’s visit was a significant event for Africa. It will refocus the world’s attention on investment in Africa.
It is already changing perceptions and mobilizing international investors. It will even change the view of many African investors, who will realize that we must lead the way.
Because if we come forward and show confidence in our continent by directing our savings into long-term investments in Africa, others will follow. This is one of the pillars of Africapitalism: Africans for Africa.
Obama’s visit was a milestone, one long hoped for, and one with lasting impact. It confirms that the age of aid is ending. It is now time for the private sector to lead.
* Elumelu is Founder of The Tony Elumelu Foundation, Chairman of Heirs Holdings Limited, and is the leading proponent of Africapitalism; the private sector’s commitment to the economic transformation of Africa.
United States Government has said that Nigeria is not making significant progress in fiscal transparency, referencing gaps in the country’s budget disclosure, expenditure reporting, public procurement transparency and audit processes.
The assessment is contained in a report by the United States Department of State, which reviewed Nigeria’s fiscal transparency practices in its 2026 fiscal transparency report for countries published on Tuesday.
The report noted that the US government stated that Nigeria made some key fiscal documents available to the public, significant shortcomings remained in the disclosure of budgetary information and the management of public finances.
The report noted that “the government made its enacted budget and end-of-year report widely and easily accessible to the public, including online, but did not publish its executive budget proposal within a reasonable period.”
It also stated that while the Nigerian government had made information concerning the country’s debt obligations publicly available, its budget documents failed to provide a comprehensive picture of government revenues and expenditures.
“The government made information on debt obligations, including major state-owned enterprise debt, publicly available, but budget documents did not provide a substantially complete picture of the government’s revenues and expenditures, or break down expenditures to support executive offices in the budget,” the report stated.
The US government further raised concerns about discrepancies between Nigeria’s approved budget and the actual revenues and expenditures recorded during implementation.
It said, “Actual revenues and expenditures did not reasonably correspond to those in the enacted budget.”
The report also criticised the country’s supreme audit institution, stating that it did not meet international standards of independence and did not publish substantive reports, although it had access to the entire executed budget.
“The supreme audit institution did not meet international standards of independence or publish substantive reports but did have access to the entire executed budget,” it stated.
The assessment, however, acknowledged that Nigeria’s sovereign wealth fund had an adequate legal framework and disclosed information about its funding and the general approach to withdrawals.History
“The sovereign wealth fund had a sound legal framework and disclosed its source of funding and general approach to withdrawals,” the US government said.
The World Bank Group is supporting the expansion of Africa’s digital commerce infrastructure to help small businesses reach new markets, create jobs, and strengthen economic opportunities across the continent.
Through Jumia, Africa’s leading e-commerce platform, the investment is expected to enable approximately 60,000 local annual active sellers to participate more fully in the digital economy, support around 1,800 direct jobs, and create income-generating opportunities for more than 100,000 independent sales agents.
As digital commerce continues to grow across Africa, reliable access to online marketplaces, logistics networks, and digital payments are becoming increasingly important for entrepreneurs and small businesses seeking to expand beyond local markets. Strengthening this infrastructure can help firms increase sales, improve productivity, and connect consumers with a wider range of affordable goods and services.
To support this effort, the International Finance Corporation (IFC), the private sector arm of the World Bank Group, is investing US$25 million in equity in Jumia Technologies AG (Jumia), Africa’s largest public e-commerce platform. The investment will support Jumia’s next phase of growth across its core African markets, strengthening its integrated marketplace and logistics network.
By expanding access to digital commerce tools and services, the investment will help businesses grow, improve price transparency, and contribute to more inclusive and resilient private sector development across Africa.
“The support of the World Bank Group is a milestone for Jumia and for African e-commerce more broadly. It validates both the discipline we have brought to our business in recent years and the tangible impact our platform has on small businesses, jobs, and consumers across our eight markets. With partners like the IFC, we can accelerate the digital commerce infrastructure Africa needs” said Francis Dufay, CEO of Jumia.
“Jumia demonstrates how pan-African e-commerce platforms can expand economic opportunity at scale. Our investment supports the company’s next phase of growth while contributing to create jobs, digitizing supply chains and distributions channels and mobilizing private investment” said Farid Fezoua, Director for Equity, Funds, and Venture Capital at the International Finance Corporation, World Bank Group.
Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has cautioned the public against fake recruitment offers and fraudulent employment letters circulating in the agency’s name.
Eniola Akinkuotu, head of Media and Corporate Communications of the Commission, stated that NUPRC has received reports of counterfeit and AI-generated appointment letters bearing names not known to the regulator.
The Commission also said fraudsters have been extorting money from jobseekers by promising placement within the agency.
NUPRC has reported the incidents to law enforcement and said investigations are underway.
The regulator reiterated that there is no ongoing recruitment exercise and warned members of the public not to make any payments for supposed job offers.
“Whenever the Commission decides to recruit, the process will be conducted strictly in accordance with extant laws and government regulations,” the statement said.
The Commission urged jobseekers to verify any purported offer and to rely only on official NUPRC communications for recruitment information.
The warning follows growing concerns about the misuse of digital tools, including artificial intelligence, to fabricate apparently authentic documents that can deceive the public.
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