Following the successful completion of the replenishment of the 17th African Development Fund (ADF-17), which secured a record US$11 billion for Africa’s most vulnerable countries, global efforts to mobilize private investment on the continent have entered a new phase. The African Development Bank Group and the UK Government convened the world’s leading investors and private sector leaders in London for the first African Private Capital Mobilization Day, signaling a decisive shift from dialogue to implementation.
The high-profile gathering, held at Lancaster House on 17 December, brought together more than 150 senior decision-makers from sovereign wealth funds, pension funds, private equity firms, insurance companies, charities, development finance institutions and export credit agencies. The event highlighted a shared ambition to dramatically increase the flow of private capital into African economies and close the continent’s estimated annual development financing gap of US$402 billion.
A new era of execution: Building on ADF-17
Dr. Sidi Ould Tarr, President of the African Development Bank Group, said this event is a natural extension of the ADF-17 replenishment process and a major step in advancing the Bank’s vision for a new African financial architecture.
“We will take concrete steps to build on recent work with development finance institutions, export credit agencies, pension funds, sovereign wealth funds, insurance companies and philanthropic partners,” Dr. Urd Tarr said in the opening session.
The Mobilization Day strongly reflected President Ould Tarr’s four-point vision for Africa’s transformation.
Unlocking Africa’s vast capital potential
Strengthening financial sovereignty
Turning population growth into productive dividends
Delivering resilient infrastructure and a stronger value chain
UK signals shift from donor to investor
Highlighting the UK’s renewed commitment to Africa’s investment climate, Jenny Chapman, UK Development Secretary, said: “I am delighted that President Ould Tarr has decided to host the first Private Capital Mobilization Day here in London. The UK’s changing role from donor to investor will support countries that want to grow their economies and ultimately move out of need of aid.”
The event was co-hosted by the UK Foreign Office, UK Export Finance, UK International Investment and the African Development Bank Group, demonstrating a collaborative approach to unlocking large-scale investment.
Modifying risk perception and designing new financial platforms
Throughout the day, discussions focused on persistent misconceptions about the risks of investing in Africa. New evidence from the Center for World Development, based on the latest Global Emerging Markets Risk Database analysis, confirms that long-term lending to African borrowers is significantly less risky than historically widely believed. This insight is expected to change investor sentiment and encourage increased participation by institutional investors.
The panel discussion also explored innovative financial platforms aimed at mobilizing capital into vulnerable frontier markets, including modern blended finance models, risk-sharing mechanisms, and pipeline development strategies.
Spotlight on healthcare and aviation: two catalytic sectors
Participants were introduced to two key sectoral initiatives being advanced by the African Development Bank Group and its partners.
1. African Medicines and Equipment Facility Developed in collaboration with the Gates Foundation, this platform provides African countries with predictable and affordable financing to purchase essential medicines, diagnostics, and medical equipment to strengthen health systems and preparedness.
2. Integrated Aviation Transformation Program for Africa Supported by blended finance, this program aims to modernize the continent’s aviation ecosystem. Its focus spans airports, airlines, aviation services, regional integration, tourism and trade-critical infrastructure.
Promoting private sector innovation labs focused on Africa
In a parallel closed-door session, President Ould Tarr met with senior executives from around 30 top institutional investors to explore the creation of an Africa-focused private sector innovation lab. The proposed platform will enable the co-design of new financing instruments, strategic partnerships and customized risk-sharing solutions tailored to the needs of African markets.
London Communiqué: A scalable framework for action
The results of the African Private Capital Mobilization Day were formally summarized in the London Communiqué, outlining a clear commitment by the African Development Bank Group and its partners to mobilize private capital at scale.
Next steps include developing priority actions, implementation pathways and investment structures to transform ambition into real deployable capital, unlocking billions of dollars in private capital for Africa’s transformation.
