Africa continues to grapple with a widening infrastructure financing gap and loses billions of dollars annually to financial fraud, even as the continent holds more than 1.1 trillion US dollars in domestic institutional capital drawn from pension funds, insurance pools and sovereign assets.
At a Forum, Fatima Farouk Elsheikh, Secretary-General of the Arab Bank for Economic Development in Africa (BADEA), stressed the urgent need for effective and innovative financing solutions. She described the persistent underfunding of Africa’s development as a shared responsibility, calling on institutions mandated to drive transformation and job creation to adopt a more proactive stance.
While acknowledging the continent’s vibrant entrepreneurial spirit, she identified the scarcity of risk-tolerant capital as a significant barrier to progress.
Elsheikh underscored the importance of forging stronger partnerships with multilateral organisations to translate financing into high-impact projects capable of generating employment and advancing Africa’s long-term aspirations.
Meanwhile, Samaila Zubairu, President and Chief Executive Officer of the Africa Finance Corporation (AFC), highlighted the strategic value of Africa’s mineral wealth in shaping its development trajectory.
He argued that adding value to raw materials by producing industrial outputs such as steel and fertilisers could catalyse urbanisation, stimulate innovation and expand decent job opportunities.
Zubairu criticised prevailing extractive models that constrain domestic value creation and limit employment gains, urging African leaders to prioritise concrete, measurable actions that foster sustainable and inclusive economic growth.