Policy Instability Scares Away Investors, Elumelu Warns African Leaders

Business mogul and philanthropist, Tony Elumelu, has cautioned African governments that inconsistent policies and unpredictable regulations are deterring investors from committing capital to the continent.

Elumelu, who chairs Heirs Holdings, United Bank for Africa (UBA), and Transcorp Group, delivered the warning while presenting the keynote address at the 2025 Abuja Business and Investment Summit and Expo held at the Bola Ahmed Tinubu International Conference Centre.

The summit, organised by the Federal Capital Territory Administration (FCTA) through the Abuja Investments Company Limited, gathered policymakers, investors, and business leaders to explore avenues for boosting private sector investments in Nigeria and across Africa.

In his address titled “Private Sector Leadership at the Forefront of Africa’s Economic Transformation,” Elumelu highlighted Africa’s enormous potential, stressing that the continent’s growth is hampered by policy uncertainty, poor infrastructure, limited access to finance, and weak governance systems.

“No investor will commit where the rules keep changing,” he warned. “Trust is the currency of investment, and policy stability is what converts trust into capital. Without that, we will continue to chase investors away.”

A staunch advocate of Africapitalism, Elumelu emphasized that Africa’s economic transformation must be driven by Africans themselves. “Our future will not be written in New York, London, or Beijing,” he said. “It will be written here, by African entrepreneurs, investors, and leaders who believe in this continent.”

He noted that the private sector contributes over 70 percent of Africa’s GDP and employs more than 80 percent of its workforce, yet governments often fail to provide the enabling environment for businesses to thrive.

Elumelu cited examples from sectors like energy and infrastructure, highlighting unpaid obligations to power producers and erratic regulatory decisions as deterrents to long-term investments. He pointed to Transcorp Hilton Abuja, the Transcorp Event Centre, and the company’s stake in Abuja Electricity Distribution Company as evidence of what private capital can achieve when properly supported.

“Progress slows when commitments are not honoured or when regulations shift midstream. Predictability and fairness are the foundations of economic transformation,” he said.

The UBA chairman urged a new social contract between governments, businesses, and citizens, grounded on trust, accountability, and shared prosperity. He called for collaboration in digital infrastructure, agriculture, renewable energy, and manufacturing, noting that public-private partnerships remain the most effective route to inclusive growth.

On finance, Elumelu stressed the need to deepen Africa’s financial markets and promote fintech innovations that expand credit access for small and medium-sized enterprises, which he described as the backbone of African economies.

“Public-private partnerships are the bridges that can turn ambition into achievement. When investors succeed, the nation succeeds,” he concluded.