Article by Nicholas Norbrook/ The Africa Report
Tony Elumelu, the ever-kinetic proponent of Africapitalism, advocates for wealth- building within Africa and a forward-looking approach to development. “In the 21st century, we should not blame others for our state of development as a continent; we must stand and be counted,” he says, emphasising self-reliance.
In late August, he met with Senegal’s new president, Bassirou Diomaye Faye, someone who has his own perspectives on the colonial experience. Shortly after, he joined Aliko Dangote in Kigali, Rwanda, to promote an African Renaissance with other Africa business leaders. On 24 September, he will celebrate 40 years of United Bank for Africa (UBA) operations in the United States.
Dangote in Kigali to promote an African Renaissance with other Africa business leaders. On 24 September, he will celebrate 40 years of United Bank for Africa (UBA) operations in the United States.
From his Lagos home, Elumelu unspools his expanding empire: the consolidation of UBA during Nigeria’s banking reform in 2006, the acquisition of Transcorp in 2011 – which included the licence to operate the Abuja Hilton – and the growth of Heirs Holdings into a major investor in the energy and health sectors.
In 2021, he purchased a 20,000-barrel-per-day joint venture from TotalEnergies, Shell and ENI. “Today, we produce 46,000 barrels of oil a day,” he says, generating substantial daily revenues.
The 2024 listing of the Ughelli power project on Nigeria’s stock exchange was a significant achievement. Supplying a third of Benin’s electricity, the utility’s value surpassed a billion dollars on its first trading day.
Reflecting on national growth, Elumelu mentions President Olusegun Obasanjo’s early 2000s vision for Transcorp to become a Nigerian ‘chaebol’ akin to South Korea’s conglomerates like Samsung. He asserts that Nigeria’s economic vitality results from deliberate government actions, highlighting liberalisation efforts by President Ibrahim Babangida in the 1990s and Obasanjo’s subsequent banking reforms.
While acknowledging the inevitable challenges of failures and corruption in privatisation, Elumelu remains steadfast. “Yes, it will be painful. It doesn’t mean that you shouldn’t do it,” he says.
TAR: What does having a US banking licence bring to UBA?
Tony Elumelu: UBA is the only African bank that has a federal licence to operate in the United States. It’s not easy: the US has the toughest regulatory standards. You know, before the Patriot Act in 2001, a few African banks were in the US, but once it was introduced, others left. We remained because of our governance standards.
Africa needs more than $100bn annually to address our infrastructure deficit. We’re happy to intermediate those financing flows. The US is the financial headquarters of the world, but we also operate in the United Kingdom, the United Arab Emirates, and we’re expanding in France to cover the European Union.
You also bank the United Nations from the US?
Yes, we do. We bank institutions from the development world – the United Nations agencies and the rest. They want a reliable, solid financial institution with footprints across Africa and high levels of governance. So, from the comfort of your office in America, Japan or Europe, you can send money to people in Maiduguri, Kano or Lagos using our digital platforms.
Nigeria’s Access Bank opened a Paris branch, using its London office. Is that something you’re planning to do?
We would have done so, but now the UK is no longer part of the EU, so we can’t just passport services. So we’re obtaining a French banking licence – it’s progressing very well; President [Emmanuel] Macron has been saying: “I want you to open!”
We see France as a key centre for UBA Group because we operate in 11 Francophone African countries. UBA has over 45 million customers across Africa. For these customers, we want to make sure we connect the dots – not only in America but also in Paris.
I was in Paris recently, met with Patrick Pouyanné, CEO of Total, exploring opportunities. You know, we acquired an oil asset from Shell, Total, and ENI in 2021. We think we can do more; we see Total’s vision as complementary.
How does your Francophone and Anglophone presence drive the African Continental Free Trade Area (AfCFTA) agenda?
It’s so critical. The challenge we’ve had is that intra-Africa trade is poor – less than 12%. We need to increase and improve this strongly. Africa needs to trade among itself. I was in Benin two days ago for three reasons. First, to see our UBA operations – new branches, how they’re attending to customers – and I was satisfied. Second, to see how Transcorp Group – the other hat I wear – can do more in improving access to electricity in Benin. We supply almost 30% of their energy consumption.
And why is this important? It’s about helping to develop Africa, which leads me to the third reason: to see the beneficiaries of the Tony Elumelu Foundation. We’ve supported more than 20,000 young Africans with non-refundable seed capital of $5,000 each.
And will these recipients drive the next wave of African trade integration?
Exactly. Let’s join the dots. We have the financial institution banking and facilitating payments to SMEs [small and medium-sized enterprises], who are the engine of growth, and then the government providing access to electricity to allow it to happen.
The SMEs are the ones that are going to trade across Africa. We created TEFConnect, a digital marketplace with over a million participants. One entrepreneur we visited in Benin already has business in three other African countries.
Beyond Benin, you were recently in Senegal. What’s your opinion of the Faye administration?
Early days, but what came across is that he has huge political capital and great goodwill. I saw a simple man, a down-to-earth leader, and his philosophies and actions so far are encouraging. All of us need to keep encouraging him. He represents a new generation of African leadership. If he succeeds, it will be very good for the rest of the continent.
Will you open subsidiaries in other African countries?
Indeed, we can’t stop at 20 countries. Our ambition is to be in every African country. [To get there] we’re opening up the ownership of UBA to all Africans; currently, it’s mainly Nigerians and foreign investors. We want more African participation. After the UN General Assembly, we’ll be in Uganda for an investor roadshow. Because the AfCFTA isn’t just about trading; the software you need to orchestrate and drive trade is the financial system. That’s why we want to open UBA up to more African ownership.
