Washington: The Chairman of Heirs Holdings and United Bank for Africa (UBA), Tony Elumelu, has urged African governments to unlock the continent’s vast pension funds. Elumelu made the call during the inauguration of the white paper on mobilising over four trillion dollars of untapped domestic capital across Africa, presented by UBA in Washington. He emphasized that addressing the continent’s persistent electricity crisis is crucial for fostering inclusive growth and innovation.
According to News Agency of Nigeria, Elumelu stated that Africa can no longer rely on foreign capital for development while sitting on idle resources that could be put to productive use. He argued that sustainable development must be financed from within, starting with the continent’s pension and sovereign funds. Trillions of Naira and dollars in pension assets are currently locked in low-yield instruments such as treasury bills and sovereign securities, he noted.
Elumelu proposed that these funds could be redirected towards infrastructure, manufacturing, and renewable energy initiatives. “Getting pension funds and investing them in treasury bills is not what will help Nigeria or Africa develop. You need to go and invest in critical sectors,” Elumelu stated. He acknowledged the possibility of financial losses but stressed the importance of learning from such experiences to benefit the African people.
Furthermore, Elumelu highlighted the pivotal role that United States pension funds have played in financing industrial and technological growth. He praised the establishment of Nigeria’s Contributory Pension Scheme (CPS) under former President Olusegun Obasanjo as a visionary reform, but stressed that the time has come for those funds to contribute to national development.
Elumelu pointed out the alarming fact that more than half of Africa’s population still lacks access to electricity, which he deemed unacceptable and incompatible with the ambition of building a digital and Artificial Intelligence (AI)-driven economy. He emphasized that electricity is essential for powering the data and AI revolution, and that the power sector remains the single most critical barrier to Africa’s transformation.
The UBA white paper, unveiled at the global meeting, calls for collaboration among African governments, development finance institutions, and private investors to mobilise domestic resources for long-term growth. Elumelu urged policymakers to create a conducive environment for investment, signaling seriousness to international investors and attracting more funds into Africa’s growth sectors.
“Our youths are talented, resourceful, and ambitious. They do not want handouts; they want systems that work,” Elumelu said, highlighting the immense potential of Africa’s young population. He concluded by asserting that this potential will only be realized when governments commit to solving foundational challenges such as electricity, access to finance, and governance.