Africa Can Unlock $4 Trillion in Domestic Capital Through Trust, Accountability, and AI – Tony Elumelu
Africa has the potential to mobilize over $4 trillion in domestic capital, but unlocking this wealth requires trust, accountability, and strong governance, according to Tony Elumelu, founder and chairman of Heirs Holdings. Speaking at a panel on “Boosting Productivity Growth in the Digital Age” during the Annual Meetings of the World Bank and IMF, Elumelu stressed that collaboration between governments, institutions, and the private sector is crucial to ensure artificial intelligence (AI) drives productivity rather than deepens inequality.
Elumelu explained that much of Africa’s domestic capital remains dormant because of governance challenges and lack of trust. He emphasized that digital inclusion is a gateway to economic inclusion, urging governments to create enabling environments that allow private capital to reach people effectively. “Africa has over $4 trillion in domestic capital, but we need trust, accountability, and sound governance to mobilize it effectively. Digital inclusion is economic inclusion,” he said, highlighting the need for deliberate policies to channel resources productively.
The business leader also framed productivity in a broader sense, beyond mere economic output, describing it as the creation of opportunities for individuals to thrive. He highlighted Africa’s history of technological leapfrogging, pointing to sectors like healthcare, agriculture, and energy as ripe for digital transformation. However, he warned that infrastructure deficits, especially inadequate access to electricity, and limited funding for AI startups remain major obstacles. “We need massive, deliberate investments in AI and the infrastructure that unleashes its capabilities,” he said.
Elumelu showcased initiatives by the Tony Elumelu Foundation, which equips young African entrepreneurs with digital tools through partnerships with Google and other organizations. He stressed that Africa’s youth are innovative and energetic but face barriers that restrict their participation in the digital economy. Supporting young entrepreneurs, he argued, not only enhances productivity but also prevents AI from worsening inequality. He cited the mobile money revolution as a testament to African innovation thriving even amid challenges.
Kristalina Georgieva, managing director of the IMF, reinforced these points, noting that Africa lags behind in AI readiness due to infrastructure and skills gaps. She highlighted the transformative potential of AI on labor markets, particularly the risk of widening inequality if proactive measures are not taken. Georgieva called for education reform, lifelong learning, and support for SMEs to ensure AI adoption benefits the broad workforce. Both leaders concluded that Africa’s path to inclusive digital productivity relies on accountable governance, trust, and strong collaboration between public and private sectors.
source: Business day