In response to calls for more clarity regarding aspects of its Entrepreneurship Programme selection process, the Tony Elumelu Foundation (TEF) reached out to provide clarifications and enhance transparency, addressing misconceptions among applicants.
CEO Somachi Chris-Asoluka has provided clarifications through a detailed conversation with Mimi Mefo Info (MMI) and a follow-up email, alongside updates to the foundation’s website.
Clarifying the “Seed Capital Disbursement Undertaking” Misunderstanding
One of the primary concerns raised by applicants revolved around the issuance of the “Seed Capital Disbursement Undertaking.” Many believed that receiving this document confirmed their selection for the USD$5,000 non-refundable seed capital. However, CEO Somachi Chris-Asoluka clarified that this document was provided to all applicants of the previous cohort who entered the training phase and does not indicate final selection.
“The Seed Capital Disbursement Undertaking is a document we provide to everyone who enters the training phase,” said Chris-Asoluka. “It was never intended as a confirmation of selection, but as a preparatory step to ensure that, should an applicant be selected, they already have all the necessary documents in place.”
She further acknowledged that the misunderstanding arose due to misinterpretations by applicants, which led to unfounded allegations. “We understand that the wording may have led to some confusion, and we have ensured clearer communication going forward,” she added.
Explaining the High Rejection Rate
Some applicants reported being disqualified, despite undergoing the training process, fuelling speculation about the selection process’s fairness. Ms. Chris-Asoluka explained that training is offered to many applicants, but not all will ultimately receive funding.
“Many of those who underwent the training mistakenly believed they had been selected for disbursement. In reality, the training is a general step for all applicants who pass the initial selection stage, and only a fraction of these participants ultimately receive funding. One of the actions we had taken early on, was to expand training widely, as part of our ambition to assist as many as possible. Obviously, we would like to fund more, hence our partner programme strategy,” she said.
Chris-Asoluka explained that TEF receives hundreds of thousands of applications each year, and the selection process follows global best practices to ensure fairness.
“Our process is rigorous, transparent, and managed by credible third-party consulting firms to remove any bias or conflicts of interest. No one at the Foundation has any role in selection.” Ms. Chris-Asoluka emphasized. Since 2023, TEF has engaged Ernst & Young (EY) for this role, with previous firms including Accenture and Deloitte.
Clarification on UBA Account Requirements
Another issue was the requirement for applicants to open an account with United Bank for Africa (UBA). Some applicants viewed this as burdensome. The TEF CEO, however, clarified that this requirement is solely for the purpose of ensuring a smooth and efficient disbursement process, and it comes at no cost.
“Opening an account with UBA is purely for the purpose of ensuring seamless payment to those who are selected,” she explained. “These accounts are provided at no cost to the applicants.”
Chris-Asoluka reassured applicants that there is no financial obligation associated with opening the account and that it is a procedural step to facilitate fund transfers.
Addressing Financial Barriers in High-Cost Environments
TEF also acknowledged concerns regarding the high costs associated with business registration in some countries, which some applicants felt created an uneven playing field. The CEO assured that TEF is aware of these recent challenges.
“We have realized that in some countries, the cost of opening a business can be prohibitive,” Chris-Asoluka said. “Thus, only entrepreneurs who have been selected for seed capital disbursement are required to submit their business registration documents as part of our due diligence process.”
This statement indicates TEF’s commitment to making the programme even more inclusive and accessible to entrepreneurs in varying economic landscapes.
New Measures for Greater Transparency
In an email to MMI, Chris-Asoluka confirmed new additions to the website showing a further detailing of the selection process for even fuller transparency.
The updated information on the TEF website outlines that the selection process is managed by reputable third-party firms—currently Ernst & Young—and has previously involved Accenture and Deloitte. The website also provides a detailed breakdown of the steps involved in the selection process, reinforcing the foundation’s commitment to transparency.
Moving Forward
TEF’s clarifications and website updates have addressed several concerns. The foundation remains steadfast in its belief that its procedures are transparent, fair, and in line with international best practices.
Mimi Mefo Info will continue to monitor the experiences of future cohorts, ensuring that the voices of all stakeholders are heard in Africa’s entrepreneurial community.
