Editor's Note: - March 10, 2025 - This article has been edited in some parts, including the title and subheading. This involved a removal of some terms that were used in the original article. This follows an exclusive interview with the CEO of TEF, during which clarifications were provided and an update made on the TEF website.
The Tony Elumelu Foundation (TEF), the United Arab Emirates Office of Affairs Development, and the Khalifa Bin Zayed Al Nahyan Foundation signed a USD $6 million strategic partnership agreement on the 12th of February 2025 to provide business training, mentorship, access to networks, and non-refundable $5000 seed capital to 1000 Young African entrepreneurs. But this agreement is being overshadowed by concerns from some entrepreneurs, seeking more clarity on the process. .
TEF founder Tony O. Elumelu and His Excellency Mohamed Haji AI Khoori, the director general of the Khalifa Bin Zayed Al Nahyan Foundation, signed the partnership agreement at the World Government Summit. This action demonstrates both organisations’ shared commitment to fostering economic empowerment and entrepreneurship across Africa.
Tony O. Elumelu founded the Tony Elumelu Foundation, a non-profit organisation, in 2010. The headquarters sit in Lagos, Nigeria. The foundation has empowered 18,000 African entrepreneurs across 54 African countries. The Khalifa Bin Zayed AL Nahyan Foundation stands out as a distinguished philanthropic organisation linked to Earth Zayed. It has a long-standing commitment to humanitarian and development projects, focusing on education, healthcare, economic empowerment, and enterprise development.
A Mutually Beneficial Partnership?
Through the strategic signed partnership agreement on the 12th of February 2025, the Khalifa Bin Foundation, together with the Tony Elumelu Foundation, will execute abilities in catalysing entrepreneurship with the help of the Tony Elumelu Entrepreneurship Programme, which has pioneering business management training, mentorship, and capital funding for African entrepreneurs.
During the signing of the partnership, Tony Elumelu stated that “Empowering entrepreneurs is not just a moral imperative but also a strategic investment in Africa’s future. By providing the necessary access to capital, mentorship, and resources, we are unlocking the potential of Africa’s entrepreneurial talent, eradicating poverty, driving self-reliance, and paving the way for inclusive growth and prosperity on the continent. This partnership between the Tony Elumelu Foundation and the Khalifa Bin Zayed Al Nahyan Foundation not only reflects our shared vision of empowering Africa’s next generation of business leaders but will also create a ripple effect of economic transformation across the continent.”
The TEF Entrepreneurship Programme was launched in 2015. Since then, it has trained 2.5 million young Africans on its digital hub, TEFConnect. It has disbursed over 100 million in direct funding to more than 21,000 Africans. TEF equally works with international partners, including the EU, the UNDP, the ICRC, and the Ikea Foundation. The partnership signed yesterday with the Khalifa Bin Zayed AI Nahyan Foundation is the first with a Gulf-based Philanthropy. TEF is currently accepting applications from entrepreneurs across Africa with innovative business ideas or existing business ideas older than five years.
Questions Surrounding Transparency
While TEF continues to expand its footprint in entrepreneurship development, some concerns about its transparency arose from one of its cohorts. The foundation faced criticism from applicants in the 2023 cohort, who claim they were subjected to an unfair and opaque selection process.
A petition signed by 188 people alleges that over 90% of applicants were disqualified despite meeting TEF’s requirements. The most contentious issue is TEF’s demand for a Notarized Seed Capital Disbursement Undertaking, a document typically reserved for confirmed grant recipients. Applicants claim that they were instructed to pay notary fees amounting to $100 (2% of the promised $5000 grant), yet most never received any funding.
Furthermore, applicants complained of being asked to open accounts with UBA, a bank owned by Tony Elumelu, yet their accounts remained unfunded. Subsequent clarifications from the TEF CEO indicated that this was a misunderstanding. She explained that every applicant at the time was asked to open an account at no cost, to facilitate the disbursement process and only those who were selected were funded.
Previous Complaints and Unanswered Queries
It is important to note that this is not the first time TEF’s practices have come under scrutiny. Last year, on 27 January 2024, MMI reached out to the foundation in response to similar complaints from applicants, requesting clarity on issues such as the high disqualification rate and the necessity of notarised undertakings. Despite our efforts, the foundation failed to provide any meaningful response or clarification at that time.
Our ongoing attempts to obtain a transparent explanation from TEF demonstrate a persistent pattern of unresponsiveness to concerns raised by the entrepreneurial community. As we continue to follow this story, we remain committed to holding TEF accountable and ensuring that the voices of affected applicants are heard.
