Billionaire offers fat kitty for 10,000 future African entrepreneurs

Kenya: Kenyan entrepreneurs stand a chance of getting close to Sh900,000 in seed capital through the Tony Elumelu Foundation Entrepreneurship Programme (TEEP). Our writer KIUNDU WAWERU was in Lagos during the TEEP launch and brings you the story of the Nigerian billionaire behind this gift to ‘Africa.’

It is a hot December morning in Lagos, Nigeria. The air-conditioned Honda sedan playing cool music from one of the nation’s great, Fela Kuti, comes to a stop at a not so imposing office block.

At the gate, the security guards are screening the guests, journalists from around Africa. Smiling, immaculately dressed women usher in the guests to the conference room.

There is silence as the man of the moment arrives, nothing in his smile, gait, even the trim figure clad in a fitting dark blue suit gives away his status- a fast rising Nigerian billionaire, who in 2014, appeared in the Forbes list of African most richest.

“My name, ah, as you know is Tony Elumelu,” he begins his speech as cameras from the Nigerian media, African and international journalists click away. He is about to make a big announcement. “It is a pleasure to invite you here today, as my life’s story, in business, comes full circle.”

In Nigeria, Mr Elumelu is a household name. One journalist from Lagos says of his demeanour, entrepreneurial genius and philanthropic mind; “he is the media sweetheart.”

“I was born, raised, educated and have worked all my life in Africa,” he continues, “I am also an entrepreneur, and one who has enjoyed a lot of success in my chosen pursuits.”

His works have footprints all over Africa, Europe and America. He is best known for the United Bank of Africa, (UBA), Nigeria’s oldest financial institution with a presence in Kenya, one of the 19 African subsidiaries, which also has operations in New York, Paris and London. UBA was incorporated in 1961 after Nigeria’s independence, taking over from the colonial BFB (British and French Bank Limited).

In 1997 Elumelu at the age of 34 was appointed CEO of the Standard Trust Bank after acquiring it from obscurity together with a group of other young entrepreneurs. He propelled it to become one of the top five financial institutions in Nigeria.

In August 2005, STB merged with UBA in one of the biggest mergers not only seen in the Nigerian Stock Exchange but also in sub-Saharan Africa. It adopted the name UBA, and Elumelu was the CEO. Under his leadership, UBA in the same year, acquired Continental Trust Bank and Trade Bank in 2006.

Today, the UBA serves more than seven million customers. However, Elumelu would retire as CEO at a relatively young age of 47, in 2010 following a new Central Bank rule that CEOs should only serve for ten years. But like the old adage goes, life begins at 40, Elumelu would start a new phase of life which in a short time, has grown into billion dollar success.

Investments

He started the Heirs Holdings, which has investments in oil, gas, hospitality, healthcare, real estate and financial services. Despite its deceptive humble headquarters in Lagos, Heirs Holdings has a presence in 20 African countries employing over 30,000 people.

Elumelu, now the chairman of the UBA group, also chairs the Transcorp Plc., the largest conglomerate in Nigeria touted as the most compliant firm among companies listed in Nigerian Stock Exchange. And for his efforts, Elumelu, who refers to himself as the “lucky entrepreneur,” his balance sheet is well, ok.

Last year, he appeared for the first time in Forbes list of African richest, joining 12 countrymen with Aliko Dangote, the cement magnate again topping the crème de la crème dollar list. As of November 2014, Forbes puts Elumelu networth at $1billion (Sh90 billion).

With his fortune, the newest kid in the billionaires club has been giving away his wealth through the Tony Elumelu Foundation, which he started in 2010 with the sole purpose to drive African economic growth through empowering African entrepreneurship.

His passion for African growth, led by Africans, saw him coin a phrase now popular in the business world, Africapitalism.

“The term Africapitalism describes the process of transforming private investment into social wealth,” writes Elumelu in the Economist, The World in 2015 issue. In the article, he notes that Africa has been plundered for centuries by colonialists. Its rich raw materials was extracted, imported and Africans forced to buy finished goods at premium prices.

“If Africa is to transcend that chapter of its history and realise its economic potential, it must first become self-sufficient. The private sector is vital to this process.”

Unfortunately, research shows that most start-ups in Africa die before they are five years old. But Elumelu has decided to do something about it, the reason he invited journalists to his Lagos office for the launch of the Tony Elumelu Entrepreneurship Programme (TEEP). Without missing a beat he says, “I am committing $100million (more than Sh9 billion) to support the next generation of African entrepreneurs- the next Dangote’s, the next Jumia’s, the next UBA’s.”

In TEEP, whose online application portal (www.tonyelumelufoundation.org/TEEP) opened on January 1, and will be closing down on March 1, is open to Africans from all 54 countries, where 10,000 businesses and start-ups will be provided with seed capital.

The programme is seeking to empower 10,000 businesses in ten years, 1,000 annually. The foundation projects that from this, TEEP will generate one million jobs, contributing $10 billion to revenue across Africa.

Training course

The applicants will be selected by an independent selection committee, which includes, among others, Kenya’s Ory Okolloh best known for Ushahidi, which was key in tracing and helping victims of the 2008 post-election violence. They will be judged on feasibility of the business idea, market potential, financial model, scalability, leadership potential and entrepreneurial skills.

Elumelu says in his career, he has met hundreds of young entrepreneurs with incredible business ideas but lack experience and support. For this reason, successful applicants will be invited to Lagos for a customised 12-week business skills training course, mentoring and entrepreneurship boot camp.

Funding will come in two stages, the first a non-returnable Ksh450,000 ($5,000). This will help the entrepreneurs actualise their business plans and for those deemed fit, they will get a further Sh450,000 as a refundable equity capital investment.

All the lucky 1,000 selected entrepreneurs annually will then start an alumni network besides being provided with successful entrepreneurs as mentors.

“I believe that one of the key reasons I made it in business is because I benefited from mentorship of Chief Ebitimi Emmanuel Banigo at AllStates Bank,” Elumelu tells us, adding that Banigo helped him develop strategic thinking and how to channel ideas into concrete actions.

His passion for Africa and entrepreneurship is infectious. For a long time, the continent’s youths dream was to seek greener pastures in the West. But billionaire Elumelu says this shouldn’t be so in a simple sentence. “I was made in Africa, and I made it in Africa.”

The father of five attended the Ambrose Alli University then known as Bendel State University for a bachelor’s degree in Economics. He also has a Master of Science in Economics from the University of Lagos. He would later study for an Advanced Management programme at Harvard Business School.

One of his employees tells us that he is full of  humility. He is also hands on, and pays attention to detail including grammar in his speeches.