Chairman of Heirs Holdings, Tony Elumelu, has called on African governments to strategically deploy pension funds into vital sectors such as infrastructure, energy, and manufacturing, urging a shift away from low-yield investments like treasury bills.
Speaking at the launch of the United Bank for Africa (UBA) White Paper during the World Bank-IMF Annual Meetings in Washington, D.C., Elumelu emphasized that while sovereign wealth funds are important, pension funds represent a more urgent resource for continent-wide development.
“Are we investing pension funds properly? No one will develop Africa for us. We must do it ourselves,” Elumelu told journalists. He pointed to the Dangote Refinery as a successful example of African-led financing, where local banks and institutions took the lead rather than relying on foreign lenders.
Highlighting the success of Nigeria’s pension reform under President Obasanjo, Elumelu said the system has been well managed but stressed that pension funds need to be actively invested in sectors that can fuel economic growth.
“Investing pension funds only in treasury bills will not develop Nigeria. We must channel them into critical sectors infrastructure, energy, manufacturing even if there’s a 5–10 percent loss initially. We will learn and improve over time,” he stated.
Elumelu also stressed the importance of Africa’s inclusion in the global digital revolution, underscoring the continent’s need for a voice in shaping governance, standards, and protocols around emerging technologies such as artificial intelligence (AI).
“Africa must have a seat at the table where governance, practices, and protocols for artificial intelligence are being developed. Digital inclusion is economic inclusion,” he remarked.
The entrepreneur highlighted that digital transformation should extend beyond productivity gains to the democratization of prosperity for all Africans.
He further stressed that improving access to electricity is foundational for digital progress, noting that over half of Africa’s population still lacks reliable power, a critical bottleneck for enabling the AI and data revolutions.
“I call on all African governments that are genuinely interested in solving youth unemployment and driving transformation to fix the electricity challenge,” Elumelu urged.
He concluded with a powerful message for Africa’s youth: they don’t seek sympathy but “functional systems, an enabling environment that allows them to apply their talents productively.”
“If this happens, Africa will develop. If not, we are doomed,” he warned.
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