The Tony Elumelu Foundation (TEF) is set to announce the 2025 cohort of its flagship entrepreneurship programme at a time when African startups are struggling with funding constraints and economic headwinds.
Now in its eleventh year, the programme provides $5,000 in non-refundable seed capital to each selected entrepreneur, alongside business training, mentorship, and access to investment opportunities.
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In a statement on Friday, the foundation said that since its inception in 2015, it has supported over 18,000 entrepreneurs across Africa, creating 1.5 million direct and indirect jobs and generating more than $4.2 billion in revenue.
The latest cohort will be selected through a process overseen by professional services firm Ernst & Young, which TEF says ensures an independent and transparent evaluation.
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However, the programme’s announcement comes amid wider concerns over the slowdown in venture capital inflows into Africa, which fell sharply in 2023 after years of rapid growth. Many startups have struggled to secure follow-on funding, leading to closures and layoffs across key sectors.
Alternative to aid
Tony Elumelu, the foundation’s founder and chairman of Heirs Holdings, has consistently argued that empowering small businesses, rather than relying on foreign aid, is key to Africa’s economic transformation.
“I believe that Africa’s transformation will not be led by aid, but by empowering the next generation of African entrepreneurs— giving them the tools, the funding, the training, and the networks to build sustainable businesses that create jobs and drive economic growth.
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“Over the past decade, we have nurtured entrepreneurs from inception to success, scaling our impact across all 54 African countries. We have provided capital and also developed a robust monitoring and evaluation framework that allows us to track the progress of our entrepreneurs and measure their contributions to their communities and economies.
“No other organisation is implementing entrepreneurship development at this scale across Africa. We have learned, we have refined, and we continue to improve, ensuring that African entrepreneurs—women and men—are at the forefront of solving our continent’s challenges and creating wealth for themselves and their communities. Entrepreneurship is the key to Africa’s prosperity.” he said before the announcement.
Despite its impact, the TEF programme represents only a fraction of the capital required to scale Africa’s small and medium-sized enterprises. Many entrepreneurs who receive the foundation’s initial grant struggle to secure additional funding from banks and investors due to high interest rates and a risk-averse lending environment.
Funding constraints
According to industry reports, venture capital funding in Africa fell by over 50 per cent in 2023 as global investors pulled back amid rising interest rates and economic uncertainty. Fintech, agritech, and renewable energy—sectors that have traditionally attracted significant investment—have all felt the squeeze.
While initiatives like TEF offer early-stage support, critics argue that African governments must do more to improve the business environment, including reducing regulatory hurdles and improving access to financing. Entrepreneurs who have benefited from TEF grants often cite difficulties in sustaining and scaling their businesses without additional investment.
Fatima Diallo, a Senegalese agritech entrepreneur and past TEF beneficiary, said the foundation’s funding was crucial in launching her business, but securing follow-on capital remains a challenge.
“I started my agribusiness with nothing but an idea. TEF changed everything. With the funding, training, and mentorship, I have now expanded across three countries and employ 25 people,” she said.
“As a woman in the fintech industry, it was difficult to secure funding. TEF not only provided me with capital but also the confidence and skills to build a business that is now attracting international investors.” Mary Okeke, Nigeria, Fintech Founder, said.
Despite these challenges, private sector-led initiatives such as TEF continue to fill critical gaps in Africa’s entrepreneurial ecosystem. Since its launch, TEF has disbursed over $100 million to startups across all 54 African countries, a scale unmatched by any other philanthropic effort on the continent.
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