Tony Elumelu, Chairman of the United Bank for Africa Plc.
Tony O. Elumelu, Chairman of the United Bank for Africa (UBA) Plc has suggested that African governments should allocate 10 % of Pension Funds to support the private sector especially entrepreneurs.
Tony O. Elumelu said African governments were still following the model being used by the developed countries in administering Pension Funds, which made it difficult for the private sector to access such funds.
UBA Chairman, who is also the Chairman of Tony Elumelu Foundation, disclosed this during a seminar for some business students of the University of Ghana in Accra. He explained that the model being used by the African governments, which they borrowed from their developed economies, did not engender private sector growth.
Mr Elumelu, who is an Economist, Entrepreneur, Investor and Philanthropist and holds several investment portfolio in Africa in the areas of banking, energy and oil sectors, was on a two-day working visit to Ghana also interacted with young entrepreneurs and some businessmen in Ghana.
He said a section of the public argue that allocating part of pension funds to finance projects in the private sector was a risky venture, but said the gains African countries would derive from investing part of the Pension Funds in the private sector businesses, would overshadow the apparent risk .
He noted that Africa would derive a lot of benefits if portions of Pension Funds were channeled to support private sector business initiatives.
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