Mr Tony Elumelu, Chairman of Heirs Oil and Gas (HHOG) Limited and United Bank for Africa (UBA) Plc, has stated that he is “very concerned” about a global recession.
Tony Elumelu Foundation (TEF) Founder Tony Elumelu revealed this during a CNN interview with Richard Quest.
While consecutive interest rate hikes have helped control inflation, a recent World Bank report indicated that such a series of rate hikes could push the world into a recession in 2023, owing to synchronicity not seen in the previous five decades.
As a result, it is expected that as developed economies maintain high rates, emerging markets such as Nigeria will suffer economic consequences.
What Tony Elumelu is saying
Tony Elumelu signed a youth entrepreneurship deal with the UN, which is expected to provide access to capital on the continent.
- When asked if he was concerned about a worldwide recession, he responded, “I am very worried, but the glass is half full. In emerging markets, I see that, despite inflation and rising interest rates, the continent offers more prospects than most emerging countries.”
- “I think prioritizing the young and investing in their future would help us create sustainable economic prosperity for all. I don’t see despair; I see an opportunity for us to do more in order to produce the kind of prosperity that would move the globe toward more booms rather than recessions,” he added.
He also remarked that more needed to be done to help the economic situation of the unemployed. He advocated for a global effort to combat unemployment and encourage entrepreneurship.
- “We need three things to unlock potential in the young ones; first, we need the government to provide an enabling environment to enable the young ones to achieve; second, access to electricity is so difficult in Africa, and without electricity, you can’t do much, so we need to fix that.”
- “Third, new entrepreneurs require access to capital, which is why the Tony Elumelu Foundation provides non-refundable seed financing of $5000, not because we have so much, but because we want to give to the younger generation,” he continued.
Elumelu also emphasized the importance of business education and mentoring for young entrepreneurs, as well as successful African business leaders who can serve as role models and leverage the existing supply chain.
