The Chairman of Heirs Oil and Gas (HHOG) Limited and United Bank for Africa (UBA) Plc, Mr Tony Elumelu has pointed out the urgent need to fix the issue of poverty in Africa, “entrepreneurs and governments need to fix the issues hindering the potentials of entrepreneurs in the continent.”
Elumelu who is also the Founder of Foundation (TEF) suggested this during an interview on CNN with Richard Quest, shared his thoughts on the need to prioritize the young ones and invest in their future.
“I believe that this will help us to create an ultimately sustainable economic prosperity for us as a continent,” he said.
He also remarked that more needed to be done to help the economic situation of the unemployed. He advocated for a global effort to combat unemployment and encourage entrepreneurship.
According to him, “We need three things in unlocking the potentials of the young ones. First, we need the enabling environment. That our government create an enabling environment that enables the young ones succeed. Access to electricity is so difficult in Africa and without electricity you can’t do much as an entrepreneur. So, you need to fix that.
“Two, young entrepreneurs in Africa need access to capital – affordable capital that will help them prove their cause and that is why in the Tony Elumelu Foundation, we provide seed capital. A non-refundable seed capital of $5,000. Not because we have much, but because we want to give opportunity to the young African to enable them prove their concepts, so that collectively, all of us can develop Africa and empower Africa to economic prosperity.
“And the third thing they need, they need business education and mentoring. They need successful African business leaders for us to show example. For us to embrace their thoughts; for us to show them how to walk the path and also have them leverage on our supply chain, so that we will give them a helping hand.
“All of us are where we are today because at some point in our business development and entrepreneurship journey, with got opportunity, we got a helping hand. We got a platform to support us. So, those three things will help young African entrepreneurs to do well.
Tony Elumelu signed a youth entrepreneurship deal with the UN, which is expected to provide access to capital on the continent.
When asked if he was concerned about a worldwide recession, he responded, “I am very worried, but the glass is half full. What I see in emerging markets is that, despite inflation and rising interest rates, the continent offers more prospects than most emerging countries.”
“I think that prioritizing the young and investing in their future would help us create ultimately sustainable economic prosperity for all. I don’t see despair; I see an opportunity for us to do more in order to produce the kind of prosperity that would move the globe toward more booms rather than recessions,” he added.
Elumelu also emphasized that young entrepreneurs require business education and mentoring, as well as successful African business leaders who can serve as role models and use the existing supply chain.
While consecutive interest rate hikes have helped control inflation, a recent report by the World Bank showed that such a series of rate hikes could push the world into a recession in 2023, largely because of the degree of synchronicity not seen over the past five decades. Hence, it is expected that as developed economies maintain high rates emerging markets like Nigeria will feel the negative impact on their economies.
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