Africa has a lot of money within its financial system. Still, much of it is not being used to fund development projects such as infrastructure and industrial growth, according to Sidi Ould Tah, the President of the African Development Bank Group (AfDB).
Speaking during the AfDB Annual Meetings in Brazzaville, the Republic of Congo, the Bank President highlighted what he described as a “financing paradox” shaping Africa’s economic transformation agenda.
“The continent is grappling with annual financing needs estimated at $400 billion for structural transformation, yet it holds more than $400 trillion in savings across banks, pension funds, insurance companies, and other financial institutions,” he said.
“At the same time, Africa continues to face annual infrastructure financing needs estimated at between $130 billion and $170 billion, while still attracting only about 1 percent of global foreign investment. It’s not the lack of money, but a failure to connect and channel existing financial resources into productive investment.”
Tah said that despite the scale of domestic savings, much of this capital remains fragmented across institutions, limiting its impact on long-term infrastructure development, industrialization, and private-sector expansion.
“The core issue is not the absence of capital, but the lack of effective coordination within Africa’s financial systems to mobilize and deploy it at scale. While Africa continues to face large annual financing requirements for transformation, the existing financial base has the potential to significantly reduce dependence on external funding if properly structured and integrated,” he said.
Tah also said that Africa remains one of the most attractive investment destinations globally, yet its financial systems remain fragmented, limiting their ability to mobilize long-term capital.
“Many investors, prefer financial instruments rather than direct project exposure, while African SMEs remain stuck in the missing middle, too large for microfinance, yet too risky for commercial banks, especially in environments shaped by high energy costs, weak logistics systems and limited financing access,” he said.
“Africa’s transformation now depends on building stronger financial coordination and integration across institutions, including banks, central banks, and private equity players, to create an ecosystem that can mobilize capital at scale.”
Africa cannot continue exporting raw resources and commodities, that’s why partnerships will be key to accelerating development, since no single actor can deliver the required transformation alone, he said.
The President of the Republic of Congo, Denis Sassou Nguesso, said Africa’s development financing agenda can no longer rely on incremental or fragmented approaches, stressing the need for a more ambitious, structured, and coherent financing model aligned with the continent’s long-term transformation goals.
He said the scale of Africa’s development requirements cuts across all sectors of the economy and demands a fundamental shift in how financing is designed and delivered.
“The financing of Africa’s development now requires more ambitious approaches, grounded in a sustainable and coherent dynamic. The needs are immense and touch every sector of development,” he said.
Sassou Nguesso emphasized that meeting these demands will require a transformation in how capital is mobilized and deployed across the continent, including deeper financial markets, stronger regional financial institutions, expanded guarantee mechanisms, improved risk-sharing frameworks, and the use of blended finance instruments to attract both domestic and international investors.
He stressed that Africa’s central challenge is not the volume of available resources, but the efficiency and impact of their allocation.
“The challenge is not only to find more resources, but also to better orient them, to use them more effectively, and to dedicate them to investments capable of transforming the living conditions of our populations,” he said.
He further warned that Africa’s development cannot be achieved through isolated or fragmented interventions, but requires coordinated systems that ensure capital is directed toward productive sectors capable of generating long-term structural impact.
At the global level, the President called for reforms to the international financial architecture, arguing that it must become more representative, equitable, and responsive to Africa’s development realities.
“Development financing must become a tool of sovereignty, social justice, and shared prosperity. Africa continues to aspire to balanced partnerships, appropriate financing models, and stronger recognition of its role in the global economy,” he said.
