Here Is Why Africa Should Shift From Aid To Enterprise

By Chiugo Ndubisi, Executive Director, Heirs Holdings

When Heirs Holdings Founder and Group Chair, Tony O. Elumelu, CFR, took the stage at the 14th Nordic African Business Summit in Oslo, Norway, his message was direct and unambiguous: Africa no longer needs charity, it needs committed investment partners.

“You make your money in Africa; invest in Africa. Create jobs on the continent. Help to provide the infrastructure that we need,” Elumelu told delegates, setting the tone for what many observers see as a potential turning point in Africa–Nordic economic relations.

The summit, hosted by the Norwegian-African Business Association (NABA) in collaboration with Norfund, the Africa Finance Corporation (AFC) and the Norwegian Ministry of Foreign Affairs, brought together policymakers, investors and business leaders to explore opportunities in agriculture, trade, energy and infrastructure—sectors widely regarded as critical to sustainable economic growth.

Speaking within this context, Elumelu challenged long-standing perceptions of Africa as a recipient of aid, urging Nordic countries to instead engage the continent as a hub of investment, innovation and entrepreneurship. “Africa needs partners, not charity,” he said, a sentiment he later reinforced in interviews with Norway’s business media.

Investment Gap Despite Rising Global Confidence

Elumelu noted that Norwegian investment into Africa has declined sharply in recent years, even as overall global investment flows into the continent continue to rise. His remarks were echoed by Norway’s Minister of International Development, Åsmund Aukrust, who acknowledged the decline and encouraged Norwegian companies to embed development objectives directly into their business models.

Latest figures from the United Nations Conference on Trade and Development (UNCTAD) underline Africa’s growing investment appeal. Foreign direct investment (FDI) into the continent surged from US$40.94 billion in 2020 to US$97.03 billion in 2024, representing a compound annual growth rate (CAGR) of 24%. The data reflects renewed global confidence in Africa’s long-term growth trajectory.

The private sector already plays a dominant role in this transformation, accounting for more than 80% of total production, around two-thirds of investment, and approximately three-quarters of lending across the continent.

Nigeria, Africa’s most populous country with an estimated 237.53 million people—about 15.5% of Africa’s total population—offers a clear example of this shift. The services sector contributes an average of 56% to the country’s Gross Domestic Product (GDP), underscoring the continent’s increasing scale, performance and diversification.

Nordic Strategies Align with Africa’s Priorities

From a policy perspective, Elumelu’s call aligns closely with evolving Nordic strategies on Africa. A recent policy note by the Nordic Africa Institute (NAI) signals a decisive move away from the traditional donor–recipient model toward one based on mutual trade, investment and shared prosperity.

While Denmark, Finland, Iceland, Norway and Sweden each maintain distinct Africa priorities, they share common goals: expanding trade relations, strengthening Africa’s voice in global forums, and promoting responsible business practices.

Finland, Norway and Denmark have already launched Africa strategies emphasizing reciprocal partnerships, African-led solutions, green transition and multilateralism. With Africa’s population expected to nearly double by 2050, Nordic governments and businesses are increasingly being urged to recognize both the opportunities and responsibilities of engaging with African markets at scale.

Central to these strategies are commitments to climate adaptation, renewable energy, digital skills development, democratic stability and migration governance—areas that closely mirror Africa’s development priorities.

Private Capital in Action

A recent example of this enterprise-led partnership model is a renewable energy project involving United Bank for Africa Plc (UBA) and a consortium of energy firms, including Norway-based investor Empower New Energy.

Under a long-term Power-as-a-Service (PaaS) arrangement with Renewvia and Incremental Energy Solutions (IES), solar-and-battery hybrid systems have been installed across 25 UBA branches in five Nigerian states. The project delivers approximately 1.5 megawatts-peak (MWp) of solar capacity an