Written by Chinenye Anufolo
A chorus of African policy and legal experts is calling for a decisive shift in the continent’s development strategy, arguing that strong legal frameworks, not increased foreign aid, will determine Africa’s long-term economic trajectory.
At the forefront of this conversation is Eric Gumbo, partner at G&A Advocates LLP, who cites Kenya as a prime example of how legal innovation can reshape national fiscal models and free up domestic capital.
For decades, Africa’s development story has been supported by external funding from multilateral institutions such as the World Bank and IMF to bilateral donors and debt relief programs. While these mechanisms have played an important role, experts say they have also entrenched cycles of dependency that limit sustainable growth.
Gambo argued that the real constraint was not a lack of capital, but the absence of a strong and predictable legal system that could transform available capital into viable investments.
“What is missing is not money, but investable projects backed by legal certainty,” he said.
According to the African Development Bank, Africa faces an annual infrastructure financing gap of between $68 billion and $108 billion. But analysts say global capital markets are awash with liquidity, much of which is bypassing Africa due to regulatory uncertainty, weak contract enforcement and a changing policy environment.
In response, Kenya introduced a series of fundamental legal reforms aimed at mobilizing domestic resources. Central to this effort is the proposed KSh5 trillion National Infrastructure Fund (NIF), which aims to channel pension funds, private equity and retail investments into large-scale infrastructure projects.
Unlike traditional sovereign debt, the fund is structured to absorb key legal and sovereign risks at the project level, reducing uncertainty and lowering the cost of capital for investors.
Industry observers say the model has the potential to change the way infrastructure is financed across Africa by creating a more stable and transparent investment environment. By acting as a buffer between state and private capital, the framework allows diverse stakeholders, including development finance institutions, pension managers and private investors, to participate without exposing themselves to undue risk.
The initiative also aligns with broader continental efforts to deepen capital markets and reduce dependence on external debt.
Gambo noted that Kenya’s approach reflects lessons from countries such as Rwanda, Botswana and Mauritius, where strong institutions and regulatory clarity have played a central role in economic transformation.
He further emphasized the importance of public participation in development, noting the recent partial listing of the Kenya Pipeline Company on the Nairobi Stock Exchange as a milestone in the democratization of wealth.
“Development becomes inclusive and sustainable when citizens are involved in national infrastructure,” he said.
Plans to establish a sovereign wealth fund with an intergenerational focus are also expected to strengthen this model by ensuring that current profits are reinvested in future development priorities.
But officials warn that changing the law alone is not enough. Effective governance, transparency, and isolation from political interference remain important to ensure that such frameworks achieve their intended outcomes.
Experts also highlighted the evolving role of the legal profession in Africa’s development agenda. Legal practitioners are increasingly expected to go beyond just interpreting the law to designing and shaping the frameworks that enable investment, innovation and economic growth.
“We need to move from a reactive legal practice to a proactive legal architecture that supports development,” Gambo said, adding that incremental and continuous improvement is more effective than waiting for a perfect system.
Global development data highlights the risks. Some estimates suggest that a 10% increase in infrastructure investment could boost long-term GDP growth in emerging economies by up to 2 percentage points, directly impacting employment, health and education outcomes.
Analysts say the case for African economies’ need for homegrown solutions has become more urgent as they weather rising debt pressures and changes in the global financial landscape.
Gambo argues that the continent’s path to prosperity lies in leveraging its unique resources through strong institutions and innovative legal frameworks.
“Africa does not need to borrow its way to prosperity,” he said. “We need to build a path to get there, leveraging the assets we already have and the institutions we must have the courage to create.”
