How Elumelu’s $1 Million Loan Saved Afrinvest from Crisis

Tony Elumelu played a key role in getting Afrinvest back on its feet in 2011. This came after the global financial crisis almost brought the investment bank down. Ike Chioke, Afrinvest's CEO, shared this in a letter to Elumelu that PREMIUM TIMES obtained.

Elumelu, who is a major shareholder in United Bank for Africa, Transcorp Group, and Seplat Energy, gave a soft loan of $1 million to Chioke. He did this when Afrinvest urgently needed money to recapitalize. Chioke expressed his gratitude for the support.

“Fifteen years ago, Afrinvest was going through one of the toughest times in its history. We were struggling to rebuild and recapitalize after the global financial crisis,” Chioke said.

“At that critical moment, when our future was uncertain, you made the remarkable decision to lend me US$1 million from your personal funds. You believed not just in the business but in me, my integrity, my determination, and my belief that Afrinvest could become stronger from this challenge.”

Chioke mentioned that he finished paying back the loan this June. He called this gesture an extraordinary act of friendship, generosity, and trust.

Elumelu has a vision for Africa’s economy that he calls “Africapitalism.” This investment philosophy focuses on the private sector’s role in creating the wealth Africa needs for growth. He has also been active in philanthropy across the continent.

In March, his main charity, the Tony Elumelu Foundation, celebrated its sixteenth anniversary. Elumelu said the foundation has given out over $100 million in seed capital to 24,000 entrepreneurs across Africa, creating more than 1.5 million jobs during that time.

The foundation plans to support another 3,200 entrepreneurs this year, as announced in September.

Chioke praised the significant impact Elumelu’s financial help has had on Afrinvest. It has changed Afrinvest into a diverse regional financial services group that is growing its clients and operations in areas like asset management, investment banking, research and consulting, and securities trading.