African countries should develop investment-ready projects to take advantage of the vast financing potential within the continent. channeled Experts now say it is being incorporated into government tools.
They said this would be a bridge between continents. infrastructure funding gap; Located in $100 billion (12.9 trillion shira) Every year. It is said that there are over 500 on the continent. Investors, policy makers, financial professionals, institutional leaders, and private sector executives We met in Nairobi African Investment Council (AfIC) 2025.
It is estimated that the continent has up to $6 trillion of untapped capital across various sectors such as insurance, pension funds, banking and retail, but a huge amount of that is invested overseas.
He said this at a two-day conference. CFA Institute East Africa presidentFrancis Nashomba said african pension funds alone Manages $1.4 trillion (180.9 trillion), the single largest pool of long-term capital on the continentbut just 12 percent Invested within Africa.
“we there is enough capital in africa so We need to start making sure this money is used for investments.…Not only infrastructure projects, investments in business and now mostly in financial assets,” Nashomba Said.
he is almost 80 percent of this Funding is being sent Financial assets including government Bonds and Treasury Bills.
“We need to change this situation and invest this money into projects. No one is going to save us. Africa has to save itself.”
To utilize these funds, Nashomba The continent needs to address policies and regulations that impede cross-border movement and intra-African investment, he said, noting that the continent continues to lose around 4%. Regulatory bottlenecks are reducing the annual percentage of GDP.
Countries also need to have bankable projects and build mutual trust. he said, and now IMovement between countries remain broken
usingOnly 17 African countries Kenya is among them offerare doingVisa-free travel for all Africans.
“In order to make a project profitable, investors naturally want a return. and That return must be risk-adjusted. we You should be able to consider how to avoid most of the risks in these projects. In other words, it’s not just the risk that matters, but also the liquidity.” he pointed out.
Oyebanji Fehintola, Executive Director and Head of Financial Services at Africa Finance Corporation, called for good governance to attract more investment.
“Every dollar, whether domestic savings, pension funds or foreign investments, will only flow into well-governed, well-structured and well-managed markets. It is very important for us to remember that” he said.
AFC, which mobilizes capital into key sectors such as energy, transport and logistics, natural resources, and industrialization, has invested more than $16 billion (Shs2.1 trillion) in 36 African countries.
Kenyan Investment promotion P.S. Abubakar Hassan Abubakar said G.overment teeth Committed to enhancing the country’s position as a gateway for investment in East Africa and the continent as a whole.
This includes improving the ease of doing business and strengthening investor protection. We support efforts to free up capital for corporate growth, innovation and sustainable development.
This is due to a shift from borrowing and aid to public-private partnerships in financing major development projects.
“We don’t want to be a destination for begging or a destination for aid.we also do not want to continue taxing Kenyans. we I borrow too much and I have to stop.p to see other solutions. In other words Why we think governments are moving away from public investment and toward public-private partnerships,” AbubakarSaid.
The conference, which concludes today, is being used to rally the entire continent around the theme of “to encourage investment in their countries.”Africa Investing in Africa: Solutions to the challenges.
Investments in Africa that stood out during the forum included: Dangote expands cement and fertilizer production capacity in Ethiopia and Tanzania, exceeding investment $2 billion (258.5 billion shillings) and KCB Group announces major investment in local technology.
NSSF Uganda The quota was also announced recently. Long-term pension funding has been built into local and regional infrastructure and is now maintained.s That’s all $4.7 billion (death 607.5 billion) Among the assets. Taranta Sports City in Kenya It’s also funded by domestic capital $200 million (death
25.9 billion) mobilesEdited internally.
Pension and sovereign wealth funds in South Africa, Nigeria, Egypt and Ghana teeth All allocations to the African market are increasing.
