A leading candidate for the presidency of the African Development Bank has outlined a strategy urging African nations to mobilise up to $4.5 trillion in domestic private capital to drive the continent’s development agenda, aiming to reduce dependence on expensive international debt. This vision signals a shift towards leveraging Africa’s own financial resources to fund infrastructure, healthcare, education, and energy projects critical for sustainable growth.
The candidate, whose campaign emphasises financial innovation and regional collaboration, argues that Africa’s private sector remains largely underutilised despite holding vast untapped wealth. Estimates suggest the continent’s domestic private capital could reach $4.5 trillion if harnessed effectively, spanning assets from institutional investors, pension funds, sovereign wealth funds, and high-net-worth individuals. The strategy proposes a multi-pronged approach to channel these funds into productive investments that align with national and continental development priorities.
The proposition comes amid growing concerns over Africa’s mounting external debt burden, which has soared to levels raising alarm among economic analysts and development experts. According to recent data, several African countries face debt servicing costs exceeding 20 percent of government revenues, constraining fiscal space and undermining social spending. This has intensified calls for innovative financing solutions that do not exacerbate debt vulnerabilities.
Advocates of boosting domestic capital investment emphasise that African financial markets have matured significantly in recent years. Stock exchanges across the continent, from Johannesburg to Nairobi, have seen increased activity, with more companies listing bonds and equities. Pension funds, in particular, are expanding their asset bases due to demographic growth and rising middle classes. However, structural barriers remain, including regulatory inconsistencies, limited market liquidity, and a scarcity of creditworthy projects to attract long-term capital.
To overcome these challenges, the AfDB presidential hopeful proposes enhanced policy coordination between governments and financial regulators to create a conducive environment for private sector growth. This includes harmonising regulatory frameworks to ease cross-border investment, improving transparency, and strengthening institutions responsible for market oversight. The candidate also highlights the importance of capacity building within domestic financial institutions to manage large-scale projects effectively.
Infrastructure development forms a central pillar of the candidate’s platform, with a particular focus on renewable energy, digital connectivity, and transport networks. Africa’s infrastructure gap remains substantial, with the World Bank estimating an annual financing need of around $130 billion to meet development targets. Mobilising domestic private capital is seen as a means to bridge this gap while ensuring that projects are aligned with climate resilience and sustainability goals.
The candidate’s vision further stresses the role of public-private partnerships as a vehicle for unlocking private finance. By providing guarantees, risk-sharing mechanisms, and streamlined procurement processes, governments can reduce investment risks and attract private participation. Several African countries have begun experimenting with PPP frameworks, though success rates vary due to challenges related to contract enforcement and political stability.
Financial inclusion is another dimension addressed by the candidate, who underscores the significance of extending financial services to small and medium-sized enterprises , women entrepreneurs, and rural communities. Expanding access to credit and capital markets for these segments is critical for broad-based economic growth. Digital financial technologies, including mobile banking and fintech platforms, have demonstrated potential in expanding reach, but require further support to scale sustainably.
Regional integration emerges as a strategic priority within this framework, with the AfDB hopeful advocating for deeper economic cooperation under continental initiatives such as the African Continental Free Trade Area . By facilitating capital flows across borders and fostering larger, more liquid markets, regional integration can amplify the impact of domestic private investment. The candidate calls for the AfDB to play a pivotal role in supporting member states to align regulatory and fiscal policies in support of this goal.
International development partners are seen as complementary to the mobilisation of domestic capital rather than substitutes. The candidate argues for a recalibrated role for multilateral institutions and donors, focusing on technical assistance, capacity building, and catalytic financing instruments that reduce investment risks. This approach aims to foster a more sustainable financing model for Africa’s development rather than perpetuating cycles of external borrowing.
The challenge of addressing governance and corruption issues is acknowledged as a critical factor for success. The candidate’s campaign stresses transparency, accountability, and the strengthening of legal frameworks as essential to build investor confidence. Enhanced disclosure of public finances and rigorous monitoring mechanisms are proposed to ensure that funds are used effectively and ethically.
This vision aligns with broader global shifts emphasising sustainable development and climate action. African economies are increasingly seeking to balance economic growth with environmental preservation, necessitating investments that are climate-smart and socially inclusive. The candidate envisions the AfDB as a catalyst for directing private capital into projects that meet environmental, social, and governance criteria, thus attracting international investors prioritising responsible investments.
The contest for the AfDB presidency is closely watched given the bank’s critical role in shaping the continent’s economic trajectory. The institution manages a portfolio exceeding $40 billion and is a key financier for development projects. Leadership decisions influence not only the bank’s strategic direction but also how it collaborates with governments, the private sector, and other financial actors to meet Africa’s aspirations for industrialisation, poverty reduction, and economic resilience.
