Nigerian banker says African billionaires’ ventures must aid poor

AFRICAN billionaires should step up their giving, but should ensure that their money delivers change to ordinary citizens, Nigerian banker Tony Elumelu says.

Billionaires such as Nigerians Aliko Dangote, Michael Adenuga and South African Patrice Motsepe are already doing their bit to fight poverty, but the real challenge was to ensure they made investments that created pros- perity for everyone while creating “social wealth”.

Mr Elumelu and billionaire American Ronald Lauder spoke at a special session on philanthropy at the annual meetings of the African Development Bank in the Moroccan tourist resort of Marrakech this week.

Mr Elumelu said productive giving was where there was “measurability and evaluation” and investors could point to actual progress their money was responsible for every year.

He said the donor aid model — where cash was thrown at African governments without any real pressure on accountability — was out of step with Africa of the 21st century: “You must not make people permanently dependent or rely on you,” he said.

Mr Elumelu and his partners bought United Bank of Africa (UBA) for an initial investment of $5m in 1997 and have grown it into a multibillion-dollar business operating in 19 countries and employing 25,000 people in Africa.

He puts his own money into ventures such as innovative startups fronted by young people as well as skills development.

Mr Elumelu urged Africans to invest their money on their own continent, rather than in western capitals. He said it was acknowledged that there was an element of risk in Africa, but the returns were so lucrative that they made the risk seem small.

He trumpeted his own portfolio, saying of his billions, less than $1m was invested outside of Africa and he only had one apartment outside the continent. “I invest everything in Africa. I swim or sink in Africa.”

Mr Elumelu said African governments and the private sector could all play a role to promote philanthropy. Governments could create the enabling positive business environment, while the private sector could lead the way in demonstrating confidence from within, he said.

Global philanthropists, such as Bill and Melinda Gates, are house- hold names in Africa for their contributions to various causes, including education and health.

Mr Lauder said to raise their profile, African billionaires could give in their own names, in the way Mr Elumelu was doing, partly so they could clearly state their values and agenda. “No other people can make Africans develop. It is just Africans who can do that,” said Mr Lauder.