Tony Elumelu, the chairman of United Bank for Africa says the different challenges confronting the African continent presents opportunities for investors as “nowhere else offers the kind of Return on Investment (ROI) than Africa does.”
Elumelu, sharing his stance at the World Government Summit in Dubai on Tuesday via his X handle, questioned the “skewed” perception of risk towards Africa, revealing that he has “diversified portfolio across 4 continents.”
“Every challenge in Africa—whether it’s infrastructure deficit, energy insufficiency, or transportation inadequacy—is an investment opportunity,” Elumelu who doubles as the chair of Heirs Holdings and Transorp said.
Read also: Food, energy, manufacturing deficits open window for investors
“The key is identifying these gaps and structuring your approach to mitigate the risks. That’s where the competitive edge lies,” he added.
Global investors have cited inconsistency in government policy directions and uncertainty in exchange rate across African markets as reasons for limiting presence in the youth-infested continent.
But the narratives are beginning to change. Investor confidence are rising as a result of various market reforms implemented in major economies like Nigeria, Egypt, Kenya among others.
These reforms have increased transparency and efficiency, giving investors the true value of the economy.
Meanwhile the renowned philanthropist stated that Africa has its youthful population as a competitive advantage which investors can leverage on to grow their investments.
Investing in a continent with a median age of 19 where 65 percent of its 1.5 billion population are under 30, will yield greater returns as “we have an unstoppable demographic advantage”
“This youthful energy is a goldmine for investment, innovation, and economic growth,” Elumelu said.
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