During high school in Benin, Constant Ayihounoun was already trying to solve a problem facing farmers around him: how to increase yields without damaging the soil on which their livelihoods depend. He went on to build Agreco, which produces organic fertilizers and biopesticides. Backed by the Tony Elumelu Foundation, Agreco products now benefit more than 100 farmers.
His experience raises a broader question. How many young Africans have promising ideas that never become viable businesses because they cannot raise their first few thousand dollars or get the practical support they need to find customers? How many businesses that could create jobs and improve livelihoods never get the opportunity to grow?
According to the World Bank, 10 to 12 million young Africans enter the labor market each year, but only about 3 million formal jobs are created. While entrepreneurship alone cannot close the gap, successful businesses create jobs, and Africa needs many more of them.
For those businesses to succeed, the broader conditions must improve. Power needs to reach African homes and businesses. Infrastructure must improve. Schools must equip young people with useful skills. Governments must make it easier to start and run a business. But Africa cannot wait to solve every structural problem before supporting entrepreneurs already creating jobs. That is important as development resources become scarcer. Official development assistance fell sharply in 2025, and the OECD projects another decline in 2026.
With less aid, one practical approach is to use development and philanthropic funding where commercial investors are least likely to invest: at the beginning. For a young entrepreneur, $5,000 can buy equipment needed to get started or give a new company the time it needs to prove that its idea works.
But money alone will not build a successful business. A young entrepreneur may need help managing cash flow or hiring staff. Mentors can help them avoid costly mistakes. Strong networks can connect businesses to customers and new markets. Capital can get a business started, but practical guidance and the right connections often determine whether it survives and grows.
I first learned the importance of giving people a chance when, as a child, I watched my mother build a small restaurant through hard work and determination. Later, I benefited from those who believed in my potential and opened doors for me. I call this “democratizing luck”: ensuring access to opportunity is not limited to a fortunate few.
In 2010, my wife, Dr. Awele Elumelu, and I founded the Tony Elumelu Foundation to bridge the gap between talent and opportunity in Africa. Our 15-Year Impact Report shows the results: $120 million in seed capital disbursed to 24,000 entrepreneurs across all 54 African countries, and 2.5 million young Africans accessing business management training. These entrepreneurs have created over 1.5 million direct and indirect jobs and generated more than $4.2 billion in revenue.
Not every entrepreneur succeeds, and entrepreneurship cannot solve every problem. But the past 15 years have shown me that capital and practical support can help viable businesses survive and grow. Broader evidence supports this. A joint International Labour Organization and World Bank review of 228 studies in 62 countries found that well-designed programs, including entrepreneurship initiatives, can improve employment and earnings, especially in low- and middle-income countries. The Mastercard Foundation’s Young Africa Works strategy supports entrepreneurship and access to finance, while the African Development Bank is developing Youth Entrepreneurship Investment Banks to combine finance with business support.
No one can do this alone. Governments must create the conditions for businesses to grow. Development and philanthropic funding should take early risks, while investors and companies should support businesses as they prove themselves. Let’s back promising entrepreneurs early, then connect them to customers and commercial finance. Development finance and philanthropy should help entrepreneurs reach markets, not replace them.
The global economy benefits when Africa’s entrepreneurs succeed. By 2050, Sub-Saharan Africa’s working-age population is expected to grow by 740 million. Successful African companies can become customers and trading partners for businesses worldwide. For example, an export-ready agribusiness may buy machinery from Europe or technology from the United States, while innovations developed for African farmers may find markets in other emerging economies.
I call this philosophy Africapitalism: the belief that Africa’s private sector must play a central role in creating economic prosperity and social progress.
Africa lacks neither ideas nor ambition. What many young entrepreneurs need is capital and practical support to turn ideas into successful businesses. Africa needs partners, not charity. Development finance institutions and foundations should take more early-stage risk. As businesses prove themselves, banks, investors, and companies worldwide should finance and trade with them. The result would be more African businesses creating jobs at home and stronger commercial ties with the rest of the world.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
