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Africapitalism

Africapitalism is the economic philosophy that the African private sector has the power to transform the continent through long-term investments, creating both economic prosperity and social wealth.[1][2][3][4][5][6][7]

Nigerian philanthropist, private investor and former banker Tony O. Elumelu first iterated the term in 2010, which has been likened to concepts including "philanthropic investment," "venture philanthropy" and "philanthro-capitalism."[8]

Africapitalism, along with other efforts to focus on social enterprise as a key to inclusive economic growth, have received praise from NGOs, development and anti-poverty experts and private sector investors.[9] Some commentators claim that it undervalues the role of traditional aid in anti-poverty measures.[10]

Characteristics and Philosophy

According to Elumelu, Africapitalism is "the middle ground between business and philanthropy."[11] Characteristics of Africapitalism include:

  • Transforming private investment into social wealth, with homegrown African businesses meeting social and economic needs by creating goods and services with an innate understanding of the local environment. These businesses can bring private capital to vital infrastructure like road transport and power generation, and can create jobs for Africans and an African middle class.[12]
  • Promoting entrepreneurship. Elumelu has claimed that one of the primary roles of African governments should be in "creating the right environment for a new crop of entrepreneurs to emerge," and has described entrepreneurship as "the cornerstone to African development."[13] In December 2014, the Tony Elumelu Foundation launches an entrepreneurship program that will devote $100 million over 10 years to identify and help grow 10,000 African startups and young businesses.[14][15]
  • Adopting social enterprise. The developmental process of Africapitalism mirrors similar social enterprise schemes, which champion the dual pursuits of profit and social good through long-term investments.[16] Africapitalism likewise strives for inclusive growth, which views economic growth as a crucial element of poverty reduction.[17] Some examples of social enterprise initiatives include country-specific programs like the India Development Marketplace,[18] as well as international ones like the UN Social Enterprise Action Hub.

History

Elumelu first introduced the term "Africapitalism" in 2010,[19] and has outlined the concept’s main tenets and philosophies in numerous publications, including The Economist,[20] the Financial Times[21] and Fortune.[22]

African business news website Ventures-Africa.com referred to U.S. President Barack Obama as "Obama the Africapitalist," following his pledge of $7 billion to the "Power Africa" Initiative, which aims to advance access to power in Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania.[23]

Responses

Responses to the Africapitalist philosophy within the international development and private investment communities have been largely positive. U.S. Vice President Joe Biden, in a keynote speech at the 2014 Global Entrepreneurship Summit, celebrated the importance of "creating an entire climate in which innovation and ideas flourish."[24] African entrepreneurs like Cameroonian Christian Ngan and Kenyan Joel Mwale agree that galvanizing the African private sector is crucial to social gains in the continent, as did attendees at the 2014 Africa CEO Forum.[25][26]

Some commentators see Africapitalism as overly dismissive of the role of traditional aid in anti-poverty measures. Joel Bakan, law professor at the University of British Columbia, argues that the Africapitalist philosophy "places profound limits on the ability to do good," and that this sort of rhetoric can be used by big businesses to push towards deregulation.[27]

Bibliography

References

  1. ^ Nurse, Earl; Dougherty, Jill (12 November 2013). "Tony Elumelu: The 'Africapitalist' who wants to power Africa". CNN. Retrieved 2 January 2015.
  2. ^ Amaeshi, Kenneth (2 October 2013). "Africapitalism: Unleashing the power of emotions for Africa's Development?". African Arguments. Retrieved 2 January 2015.
  3. ^ "What Is Africapitalism?". Bloomberg TV Street Smart. 4 June 2014. Retrieved 2 January 2015.
  4. ^ Ogboukiri, Paul (12 October 2014). "Tony Elumelu: The Africapitalism champion". The New Telegraph. Retrieved 2 January 2015.
  5. ^ Chonghaile, Clár Ní (26 December 2014). "$100m fund aims to kickstart next generation of African businesses". The Guardian. Retrieved 2 January 2015.
  6. ^ Stern, Gabriella (8 May 2014). "'Africapitalist' Says It's Time for Private Sector to Step Up". The Wall Street Journal Frontiers. Retrieved 2 January 2015.
  7. ^ Court, Alex (5 December 2014). "Nigerian billionaire pledges $100 million to help grow 10,000 African startups". CNN. Retrieved 2 January 2015.
  8. ^ Hirsch, Afua (26 June 2013). "'Africapitalism' promises new model of African self-empowerment". The Guardian. Retrieved 2 January 2015.
  9. ^ Young, Holly (13 June 2014). "Social enterprise to Africapitalism: do the alternatives to capitalism work?". The Guardian. Retrieved 2 January 2015.
  10. ^ Edwards, Ruby (12 July 2013). "Can Africapitalism same the continent?". The Guardian. Retrieved 2 January 2015.
  11. ^ Rosenkranz, Rolf (6 January 2014). "Tony Elumelu's new Africapitalism". Devex. Retrieved 2 January 2015.
  12. ^ Elumelu, Tony O. (20 November 2014). "The rise of Africapitalism". The Economist. Retrieved 2 January 2015.
  13. ^ Edwards, Ruby (12 July 2013). "Can Africapitalism same the continent?". The Guardian. Retrieved 2 January 2015.
  14. ^ "Tony Elumelu gesture worth of support". East African Business Week. 14 December 2014. Retrieved 3 January 2015.
  15. ^ Court, Alex (5 December 2014). "Nigerian billionaire pledges $100 million to help grow 10,000 African startups". CNN. Retrieved 2 January 2015.
  16. ^ Hart, Stuart; Prahalad, CK (10 January 2002). [. http://www.strategy-business.com/article/11518?pg=all "The Fortune at the Bottom of the Pyramid"]. Strategy+Business. Retrieved 3 January 2015. {{cite news}}: Check |url= value (help)
  17. ^ Klassen, Stephan (June 2010). "Measuring and Monitoring Inclusive Growth: Multiple Definitions, Open Questions and Some Constructive Proposals" (PDF). Asian Development Bank. No. 12: 23. Retrieved 2 January 2015. {{cite journal}}: |volume= has extra text (help)
  18. ^ Doane, Deborah (25 February 2014). "Social enterprise: can it succeed where traditional development has failed?". The Guardian. Retrieved 2 January 2015.
  19. ^ Hirsch, Afua (26 June 2013). "'Africapitalism' promises new model of African self-empowerment". The Guardian. Retrieved 2 January 2015.
  20. ^ Elumelu, Tony O. (20 November 2014). "The rise of Africapitalism". The Economist. Retrieved 2 January 2015.
  21. ^ Elumelu, Tony (22 April 2013). - axzz2RCskeGzp "The 3 ingredients for sustaining Africa's growth". Financial Times. Retrieved 2 January 2015. {{cite news}}: Check |url= value (help)
  22. ^ Elumelu, Tony (9 May 2012). "Entrepreneurs should be watching Africa". Financial Times. Retrieved 2 January 2015.
  23. ^ Jacks, Mzwandile (8 July 2013). "Obama the Africapitalist: Creating a Private Sector Development". Ventures-Africa.com. Retrieved 2 January 2015.
  24. ^ Biden, Joseph R. "Remarks by Vice President Joe Biden to the Global Entrepreneurship Summit". http://www.whitehouse.gov. Retrieved 2 January 2015. {{cite web}}: External link in |website= (help)
  25. ^ Jacks, Mzwandile (25 March 2014). "African Business Leaders Discuss Way Forward at 2014 CEO Forum". Ventures-Africa.com. Retrieved 2 January 2015.
  26. ^ Chonghaile, Clár Ní (26 December 2014). "$100m fund aims to kickstart next generation of African businesses". The Guardian. Retrieved 2 January 2015.
  27. ^ Edwards, Ruby (12 July 2013). "Can Africapitalism same the continent?". The Guardian. Retrieved 2 January 2015.
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