Africa’s economic landscape is often viewed through the lens of risk, but Tony Elumelu, Chairman of United Bank for Africa (UBA), argues that these challenges present unparalleled investment opportunities. Speaking at the World Government Summit in Dubai, Elumelu highlighted the continent’s high return on investment (ROI), emphasizing that nowhere else offers the same level of growth potential.
Despite concerns over policy inconsistencies and currency fluctuations, investor confidence in Africa is on the rise. Countries like Nigeria, Egypt, and Kenya are implementing market reforms that enhance transparency, efficiency, and overall economic value.
Elumelu who also chairs Heirs Holdings and Transcorp, believes Africa’s infrastructure gaps, energy shortages, and transportation inefficiencies represent key investment opportunities. “Every challenge in Africa—whether it’s infrastructure deficit, energy insufficiency, or transportation inadequacy—is an investment opportunity.”
For investors, the key is to identify these gaps and develop structured approaches to stop risks, a strategy that provides a significant competitive edge.
Beyond infrastructure and policy reforms, Africa’s youthful population is another compelling reason for investors to turn their attention to the continent. With a median age of just 19 and 65% of its 1.5 billion people under 30, Africa’s demographics provide an unstoppable engine for economic growth and innovation. “This youthful energy is a goldmine for investment, innovation, and economic growth,” Elumelu noted.
This rapidly growing young workforce and expanding consumer market positions Africa as a prime destination for long-term investment across industries such as technology, finance, healthcare, and manufacturing.
Historically, foreign investors have been hesitant to expand into Africa due to perceived risks in policy unpredictability and exchange rate volatility. However, the narrative is shifting as major African economies implement reforms that enhance market stability, transparency, and investor protection.
As regulatory frameworks improve and economies diversify beyond traditional sectors like oil and agriculture, Africa’s investment appeal continues to grow.
Elumelu’s message to global investors is clear—Africa is open for business. Though challenges exist, they translate into opportunities for those willing to take a strategic approach. With a young, dynamic workforce and progressive economic reforms, Africa offers some of the highest potential returns in the world.
For investors seeking high-growth markets, the time to act is now.
