Tony Elumelu Foundation to Unveil 2025 Cohort Amid Startup Funding Challenges in Africa

The Tony Elumelu Foundation (TEF) is set to announce its 2025 cohort amid funding challenges for African startups. Now in its 11th year, TEF’s flagship entrepreneurship program provides US$5,000 in non-refundable seed capital, business training, mentorship, and investment access.

Since 2015, TEF has supported over 18,000 entrepreneurs across Africa, creating 1.5 million jobs and generating US$4.2 billion in revenue. The latest cohort will be selected through an independent process overseen by Ernst & Young.

However, the announcement comes as venture capital inflows into Africa have sharply declined, with many startups struggling to secure follow-on funding. Tony Elumelu, TEF’s founder and chairman of Heirs Holdings, emphasizes that Africa’s economic transformation depends on entrepreneurship, not foreign aid.

“Africa’s prosperity will be driven by entrepreneurs, not aid. TEF has empowered thousands with capital, training, and networks to build sustainable businesses,” he said. “We continue to refine our model to ensure African entrepreneurs lead solutions to the continent’s challenges.”

Despite TEF’s impact, many grantees struggle to secure additional financing due to high interest rates and risk-averse investors. In 2023, venture capital funding in Africa dropped over 50 percent, affecting key sectors like fintech, agritech, and renewable energy.

TEF beneficiaries highlight the program’s role in launching businesses but note challenges in scaling. Senegalese agritech entrepreneur Fatima Diallo credits TEF for her company’s expansion but acknowledges ongoing funding hurdles.

“TEF changed everything. I started with just an idea, and now my business operates in three countries with 25 employees,” she said.

Private sector-led initiatives like TEF continue to bridge funding gaps, with the foundation disbursing over US$100 million across all 54 African nations – an unmatched philanthropic effort on the continent.