Access to finance, energy key for agribusiness in Africa – Elumelu

Tony Elumelu, Chairman of Heirs Holdings, has identified electricity access, blended finance, and business education as key to the growth of agriculture as a viable career for Africa’s youth. He gave this advice at the 49th IFAD Governing Council in Rome, calling on African governments to partner with the private sector to transform rural economies. […]

Tony Elumelu, Chairman of Heirs Holdings, has identified electricity access, blended finance, and business education as key to the growth of agriculture as a viable career for Africa’s youth.

He gave this advice at the 49th IFAD Governing Council in Rome, calling on African governments to partner with the private sector to transform rural economies.

He emphasised that partnership between the government and the private sector is essential for Africa’s development.

‘We believe that increased collaboration and cooperation between government and the private sector—especially in Africa—are vital to catalyse more transformation in rural economies and agriculture, increasing food production. 

‘Food security is fundamental to societal development. We must work together to make rural economies more attractive. We need to make agriculture appealing and exciting. The youth seem eager to embrace it, but they require more support from all of us,” he said.

Highlighting the success of the Tony Elumelu Foundation (TEF), he noted that 21 percent of its 24,000 empowered entrepreneurs are in agribusiness—a sector where women lead 55% of the ventures.

“Empowering women is akin to empowering entire communities and nations, leading to success,” he said. These ventures have generated approximately 480,000 jobs across the continent,” he said.

Elumelu said that while seed capital is vital, “energy poverty” remains a massive barrier to the digital innovation required for modern food security. 

“Access to electricity is essential for economic development and transformation. We cannot discuss Artificial Intelligence (AI) without improving electricity supplies. Poor electricity access and energy poverty limit how much these young people can embrace technology,” he said.

He urged governments to dismantle stifling regulations and high collateral requirements that currently hinder SME growth.

“In some countries, regulated environments can be quite stifling. We need to engage governments… What small-scale enterprises benefit the entire economy: jobs are created by SMEs, and we must ensure youth engagement,” he said.

He called for a shift toward “blended finance” models that combine philanthropy with commercial capital to bypass traditional banking hurdles.

Tony Elumelu joined IFAD President Alvaro Lario on a panel at an event attended by 500 global leaders, including ministers, UN officials, and development experts.