AfDB’s President Calls for Overhaul of Africa’s Financial Systems to Unlock Investment for Development

Africa lix
3 Min Read
AfDB’s President Calls for Overhaul of Africa’s Financial Systems to Unlock Investment for Development

President of the African Development Bank Group (AfDB), Sidi Ould Tah, has urged investors to reshape their financial architecture to ensure capital flows efficiently to projects and people where they are most needed, during the opening of the Africa Investment Forum (AIF) Market Days on November 26 in Rabat, Morocco.

Speaking before more than 2,500 government officials, investors, and development partners, the President said that mobilising capital effectively is critical to transforming Africa’s demographic growth into economic strength.

“We must accelerate the mobilisation of capital, from our pension funds, our insurance institutions, our guarantee funds, and our national financial systems. Every dollar of investment must work harder for Africa’s development, especially for our young people.”

The AIF is an annual event that serves as a platform for showcasing, discussing, and advancing investment opportunities across Africa. 

He emphasised that reforms are needed at the national, regional, and continental levels to ensure that financial systems can support large-scale development initiatives across the continent. Innovative instruments and mechanisms are required to reduce investor risk and amplify the impact of each investment.

Tah highlighted the importance of mobilising both domestic and international resources, calling on national and international banks to actively finance Africa’s development.

“If Africa is to realise its ambitions, we must create appropriate mechanisms to guarantee investment risk and attract private-sector participation,” he said.

He described this approach as central to unleashing the potential of Africa’s young population, which he called the continent’s greatest asset. By linking financial inclusion, entrepreneurship support, and low-interest financing, the continent can equip its youth to drive innovation and economic growth.

Addressing Africa’s infrastructure gaps, the President said that large-scale investment in energy, transport, and industrial sectors is vital for job creation and economic competitiveness.

“Our infrastructure deficits are a binding constraint; if we are to create millions of jobs for our youth, we must build resilient infrastructure and process our raw materials on African soil.”

He added that industrialisation and value addition would not only create employment opportunities but also strengthen Africa’s capacity to compete globally.

AIF gathered more than 2,500 delegates this year, showcasing 41 projects across energy, transport, agribusiness, ICT, mining, and urban development. With 39 of the projects already investment-ready.

Since the inception of the AIF, it has attracted more than USD 225 billion in investment interest, with USD 32 billion reaching financial close, a track record that continues to draw institutional investors, pension funds, sovereign wealth funds, and private financiers.

This year’s edition showcases projects that place youth participation at the forefront, from renewable energy ventures that expand job opportunities to digital infrastructure.

author avatar
Africa lix
TAGGED:
Share This Article
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *