Elumelu warns unstable policies driving investors away from Africa

The Chairman of Heirs Holdings, United Bank for Africa (UBA), and Transcorp Group, Mr Tony Elumelu, has cautioned that inconsistent government policies and lack of trust are discouraging investors from Africa.

He made the statement on Wednesday while delivering the keynote address titled “Private Sector Leadership at the Forefront of Africa’s Economic Transformation” at the Abuja Business and Investment Summit and Expo 2025, held at the Bola Ahmed Tinubu International Conference Centre, Abuja.

The event was organised by the Federal Capital Territory Administration (FCTA) through its investment arm, the Abuja Investments Company Limited.

Elumelu described Africa as the world’s youngest continent, rich in natural resources and entrepreneurial talent, but said deep-rooted structural issues such as poor infrastructure, youth unemployment, and policy instability continue to hinder development.

He explained that for Africa to unlock its economic potential, governments must create stable environments that attract and retain long-term investments.

“Predictable regulation attracts long-term investment; inconsistency drives it away. No investor will commit where the rules keep changing. Trust is the currency of investment, and policy stability converts trust into capital,” he said.

Highlighting his group’s investments in power, hospitality, and financial services, Elumelu cited the Transcorp Hilton Abuja, the newly launched Transcorp Event Centre, and the group’s stake in the Abuja Electricity Distribution Company as examples of how private investment drives urban development.

He, however, lamented that unpaid government obligations and poor infrastructure remain major obstacles to private sector growth.

“For transformation to be sustainable, the private sector cannot act alone.

We must build a new social contract between governments, businesses, and citizens, anchored in trust, transparency, and shared vision,” he reiterated.

Elumelu urged African governments to prioritise macroeconomic stability, reliable infrastructure, and predictable regulations to attract patient capital.

He also called for stronger collaboration between the public and private sectors to deepen innovation, entrepreneurship, and access to finance.

He charged African leaders and entrepreneurs to take ownership of the continent’s transformation:

“Africa’s transformation will not be written in boardrooms in New York, London, or Beijing. It will be written here, by African entrepreneurs, African investors, and African leaders,”he added

Elumelu emphasised that Africa must believe in its potential, invest locally, and build economies driven by purpose rather than profit.