Tony Elumelu Foundation to disburse $16m to 3,200 Businesses

The Tony Elumelu Foundation (TEF) has announced plans to disburse over $16 million to support 3,200 young entrepreneurs across all 54 African countries in 2026, as it deepens partnerships and expands the reach of its flagship entrepreneurship programme.

Somachi Chris-Asoluka disclosed during a media briefing on Saturday ahead of the official unveiling of this year’s programme beneficiaries.

According to her, each selected entrepreneur will receive $5,000 in seed funding, alongside access to training, mentorship, and business management support designed to help them build and scale sustainable ventures.

Chris-Asoluka said the 2026 programme will be executed in four cohorts, reflecting TEF’s evolving strategy to scale impact through collaborations with governments, development institutions, and private sector players.

She noted that the foundation has significantly broadened its partnership network this year, enabling it to reach more entrepreneurs across sectors and regions.

Of the 3,200 beneficiaries, 1,751 will be funded through partnerships with companies under the Heirs Holdings Group, including Heirs Energies, Transcorp Power, Transcorp Hotels, and United Capital.

Another 1,049 entrepreneurs will be supported through collaborations with international development partners such as the European Commission, the Organisation of African, Caribbean and Pacific States (OACPS), Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), and GIZ.

In addition, 100 entrepreneurs each will benefit from partnerships involving the Seme City Development Agency, DEG, a coalition including the IKEA Foundation, UNICEF’s Generation Unlimited initiative and the Dutch government, as well as the United Nations Development Programme in partnership with Rwanda’s Ministry of Youth and Arts.

Strong demand, diverse sectors

The CEO revealed that the foundation received over 260,000 applications for the 2026 cycle, highlighting the growing demand for entrepreneurial support across Africa.

She identified agriculture, retail, artificial intelligence, ICT, the green economy, education, and healthcare as the most active sectors among applicants. However, she emphasised that the foundation does not prioritise any specific industry, noting that selection is based on the feasibility, scalability, and long-term viability of business ideas.

“We want to support businesses that can grow beyond their immediate environment and scale across countries,” she said.

Despite the programme’s impact, Chris-Asoluka pointed to infrastructure deficits, especially unreliable electricity supply, as a major constraint for small businesses across the continent.

She noted that about 80 percent of entrepreneurs allocate a significant share of their revenue to power generation, a trend she described as unsustainable and detrimental to business growth.

“If a business spends most of its income on power, its chances of success are reduced,” she said, adding that TEF complements funding with advocacy aimed at improving policy and infrastructure conditions for entrepreneurs.

Measurable impact across Africa

Chris-Asoluka said the foundation’s model has yielded strong results, with a 77.5 percent business survival rate five years after funding, significantly higher than the estimated 10 percent average for startups in Africa.

She added that since its launch in 2015, TEF has disbursed over $100 million to more than 24,000 entrepreneurs, whose businesses have collectively created about 1.5 million jobs and generated $4.2 billion in revenue.

The programme has also contributed to lifting an estimated 2.1 million people out of poverty, with about 15 percent of beneficiaries identified as persons living with disabilities, reflecting the foundation’s focus on inclusion.

Encouraging unsuccessful applicants to remain persistent, the CEO described entrepreneurship as a non-linear journey, urging them to reapply in future cycles.

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