LAGOS, Nigeria, June 28, 2013/ — On the eve of his departure to Dar es
Salaam, Tanzania, as part of a delegation of high profile African business
leaders handpicked by the White House to meet with President Obama, Tony O.
Elumelu, chairman of one of the most diversified investment groups in
Africa, reiterated his message for the United States and international
investors to engage proactively with Africa’s private sector to develop the
continent.
In a wide ranging interview (available for download at AllAfrica.com),
Elumelu talked about the rules of engagement for Africa having changed and
that those looking to invest on the continent should consider aligning with
an economic philosophy he called Africapitalism. The concept seems to be
gaining momentum on the continent and beyond – the UK Guardian newspaper
yesterday ran a feature suggesting it could be the new model for Africa’s
development.
“Africa’s economic history has been characterised by extractive industries
and rent seeking practices that have not created development in any
meaningful way. Africapitalism is simply saying there is a better and more
ethical way to invest in Africa for a sustainable future. I would like to
see both African and international investors review their strategies for
Africa. Yes, we are open for business but not at any cost. Our rules of
engagement have changed,” said Elumelu.
It is anticipated Elumelu will be part of a major announcement the US
government will make about the power sector. Through Transcorp, one of
Heirs Holdings investee companies, the group recently invested USD300
million in Nigeria’s largest power plant, located in Ughelli, Delta State
during the Nigerian government’s recent power privatization process.
Commenting on the motivation behind the power investment, he said,
“Unlimited access to affordable power in any country is a game changer and
will move the needle on the country’s development exponentially.”
Elumelu continued, “It’s not just the fact that children will be able to do
their homework, or that computers and phones can be powered in rural
villages; it is also the impact that access to affordable power will have
on the economic ecosystem. Prices will come down, entrepreneurs will expand
and innovate, and jobs will be created as a result. This is Africapitalism
at work.”
Other investments aside, Elumelu has been vocal about power, which has led
many to speculate that Elumelu is looking to make a significant impact in
this sector, much as he did in banking during his time as the Group CEO of
UBA.
“We played a transformative role in democratizing the banking sector at a
time when no one was really paying much attention to Africa, Elumelu says.
“We had a clear strategy, first mover advantage and an understanding of
what the market needed and we are focused on doing the same for power. We
are taking over an old government-run plant that desperately needs
rehabilitation and doubling its output within our first two years of
operations. By 2017, we will be generating 1000MW of electricity and
Nigerians across the country will feel the impact of affordable and
consistent power.”