Entrepreneur and philanthropist Tony Elumelu
shares his thoughts on how the private sector can support the
sustainable development goals, and what multilateral institutions can do
to help.
https://youtu.be/iccrGdqW3VE |
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Businesses can drive inclusivity by developing products that are affordable and accessible.
By incorporating environmental, social and governance principles into their practices, businesses can ensure that they are firmly positioned for the long term, thus fostering sustainability.
By incorporating environmental, social and governance principles into their practices, businesses can ensure that they are firmly positioned for the long term, thus fostering sustainability.
Inclusiveness and sustainability are strongly
embedded in my economic philosophy of ‘Africapitalism’. That is the
idea that the private sector can and must play a role in the development
of Africa, by creating financial prosperity and social wealth. It is a
call to business to quit playing business as usual and embrace a higher
ideal, which can ensure that global wealth and prosperity is more
broadly shared and not exclusive to a minor elite.
Across the globe, the private sector has an important role to play in
the achievement of the SDGs. With slow global growth and the end of the
commodity supply cycle, many governments do not have resources required
to fully pursue their development goals. And this is where the
resources of the private sector become very critical. Through
partnerships, the private and public sector can discover areas of
alignment, especially in critical areas such as infrastructure, power,
and agriculture, to mention but a few.
Private capital will go a long way is in solving intractable
problems. However, beyond bridging the finance gap it is necessary to
engage the private sector as they can support inclusive development
through their organizational policies and practices. Businesses can
drive inclusivity by developing products that are affordable and
accessible by the rural poor and deliver benefits in the communities
where they operate.
Similarly, by incorporating environmental, social and governance
principles into their practices, businesses can ensure that they are
firmly positioned for the long term, fostering sustainability.
Indeed, inclusiveness and sustainability are strongly embedded in my
economic philosophy of ‘Africapitalism’. That is the idea that the
private sector can and must play a role in the development of Africa, by
creating financial prosperity and social wealth. It is a call to
business to quit playing business as usual and embrace a higher ideal,
which can ensure that global wealth and prosperity is more broadly
shared and not exclusive to a minor elite.
My advocacy for private sector-led growth does not stem from theory,
but from about 30 years of experience in Africa's private sector.
Through my businesses and investments, I have been able to see
first-hand the transformative power of private capital in the lives of
individuals and communities. United Bank for Africa (UBA),
for instance with its presence in 19 African countries has created over
25,000 direct jobs, providing access to finance and serving over 14
million customers across 1,000 branches and call centers. We are indeed
deepening financial inclusion and building the capacity of the private
capital market to foster local and national financial transactions that
will benefit the continent and create jobs. These experiences inspired
the launch of the Tony Elumelu Foundation Entrepreneurship program – a $100 million initiative to identify, fund, train and mentor 10,000 African entrepreneurs over a 10-year period.
Within only a three year period we have recorded huge successes. A survey conducted last year revealed that over 50 percent of our startups have at least doubled their revenue and the number of people they employ.
Their success stories inspire me to engage in and advocate for better
policies that will improve the enabling environment for business across
the continent. I do so in my engagement with presidents and policy
makers across the world and on the various platform that I'm involved
with. Such as a UN Sustainable Energy for All Council and the US
Government Power Africa Initiative.
Specifically, and consistently, I emphasize the need to transform Africa’s power sector
because of the huge multiplier effect power has on the entire
continent. As a proponent of a more active role for the private sector,
my main challenge to multilateral agencies, including the World Bank
Group, is to rethink their model of development assistance to the
developing countries in Africa.
What Africa needs is more trade and investment and support for
entrepreneurs. And it is by prioritizing this that they can best engage
the private sector on the continent. One sure way that the private
sector in Africa can be engaged is by reducing the perceived and real
business risks that deter the flow of investment into the continent,
especially, foreign direct investments. We must change the persistent
negative narrative around Africa to one of opportunity and attractive
returns for discerning global investors.
And one other way the World Bank Group and others can help is by
shaping global trade policies to ensure that the rules are reciprocal,
fair, and beneficial to all parties and not just the more advanced
nations. This is very important, especially in Africa where many nations
are trying to diversify their export portfolios by coming up with
innovative means to produce goods that are internationally competitive.
However, if the rules of trade remain unfair, it is hard to see how
Africa can build strong, diversified and resilient economies.
Multilateral institutions are also well positioned to assist
developing countries in their drive to promote more private sector
growth by supporting more homegrown entrepreneurs and their business
ideas.
The Tony Elemelu Foundation offers a verified, tried and tested model
to support the transformation of Africa. Africa was left behind in the
19th century industrial revolution. And as the fourth industrial
revolution beckons, Africa cannot - and the world in fact, cannot -
afford for Africa to be left behind again. It is our collective
responsibility to ensure that no one, no one is left behind.
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