Africa has substantial financial resources within its banking and investment systems, but much of this capital is not being channelled into productive projects such as infrastructure and industrial growth, according to the African Development Bank (AfDB) Group President Sidi Ould Tah. Speaking during the AfDB Annual Meetings in Brazzaville, Republic of Congo, Tah pointed to what he described as a “financing paradox” at the heart of Africa’s economic transformation agenda. ALSO READ: PM Nsengiyumva joins leaders for Africa Day celebration in Brazzaville “The continent is grappling with annual financing needs estimated at about $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, he noted that Africa requires between $130 billion and $170 billion annually for infrastructure development alone, yet continues to attract only about 1 per cent of global foreign direct investment. “It’s not the lack of money, but a failure to connect and channel existing financial resources into productive investment,” he said. ALSO READ: Financing Africa: Unlocking sustainable growth Tah said that despite the scale of domestic savings, much of it remains fragmented across financial institutions, limiting its impact on long-term infrastructure, industrialisation and private sector growth. “The core issue is not the absence of capital, but the lack of effective coordination within Africa’s financial systems to mobilise and deploy it at scale,” he said. He added that Africa’s financial base has the potential to significantly reduce dependence on external funding if properly structured and integrated. Tah also said Africa remains an attractive investment destination globally, but structural weaknesses in financial systems continue to limit capital mobilisation. “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,” he said, citing challenges such as high energy costs, weak logistics systems and limited access to finance. He called for stronger financial coordination across institutions, including banks, central banks and private equity players, to build an ecosystem capable of mobilising long-term capital. “Africa’s transformation now depends on building stronger financial coordination and integration across institutions,” he said. He also stressed that partnerships are essential, noting that Africa cannot rely on fragmented efforts or continue exporting raw commodities without value addition. The President of the Republic of Congo, Denis Sassou Nguesso, echoed similar sentiments, saying Africa’s development financing requires more ambitious, structured and coherent approaches aligned with long-term transformation goals. “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 called for deeper financial markets, stronger regional institutions, expanded guarantee mechanisms, improved risk-sharing frameworks and increased use of blended finance to attract both domestic and international investors. He stressed that the key challenge is not only the availability of resources, but how effectively they are allocated. “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 also warned against fragmented approaches to development, saying coordinated systems are needed to ensure capital flows into productive sectors with long-term impact. At the global level, he called for reforms to the international financial architecture to make it more representative and responsive to Africa’s needs. “Development financing must become a tool of sovereignty, social justice and shared prosperity,” he said.
