AfDB Seeks Urgent Reforms to Unlock Africa’s $4trn Savings
The President of the African Development Bank (AfDB), Sidi Ould Tah, has called for urgent reforms to unlock Africa’s estimated four trillion dollars in domestic savings.
Tah made the call at the official opening of the 2026 AfDB Annual Meetings in Brazzaville, Democratic Republic of Congo on Tuesday.
While outlining Africa’s financing challenges and development priorities, he said Africa’s ambitions had outgrown existing financial structures, in spite the continent holding vast domestic financial resources.
According to him, Africa’s challenge is not a lack of capital, but the inability to channel available resources into productive investment.
Tah said that Africa continued to face a large development financing gap, in spite strong economic resilience and growth potential.
He said savings held in banks, pension funds, insurance companies and sovereign wealth funds remain largely underutilised.
The AfDB president stressed that fragmented financial systems were limiting Africa’s ability to mobilise long-term investment capital.
He called for stronger financial markets, better coordination among institutions and improved investment instruments.
Tah said Africa must strengthen risk-sharing mechanisms to attract private investors and reduce the cost of capital.
He added that development finance institutions must play a catalytic role in mobilising private capital rather than relying on sovereign lending alone.
According to him, every dollar of public finance should be designed to crowd in multiple dollars of private investment.
Tah also emphasised the need for stronger project pipelines to ensure that investments were bankable and ready for financing.
He said Africa’s financial sovereignty would be achieved through stronger institutions, deeper markets and better policy coordination.
The AfDB president urged African countries to accelerate reforms aimed at building an integrated financial architecture capable of supporting transformation.
Also speaking, the Chairperson of the African Union Commission, Mahmoud Youssouf, said Africa was facing major challenges including geopolitical tensions, economic uncertainty, climate shocks, rising debt pressures and declining external financing flows.
Youssouf, represented by the Deputy chairperson of the Commission, Ms Selma Haddadi, said Africa was at a critical crossroads where it must manage external vulnerabilities while aggressively financing its internal transformation.
He said although the continent faced large development financing gaps, it also held vast assets including a young population, critical minerals, renewable energy potential and the African Continental Free Trade Area.
He called for stronger domestic resource mobilisation, deeper financial integration and greater use of pension funds, insurance assets, sovereign wealth funds and innovative financing tools.
According to him, this will help to bridge Africa’s estimated annual development financing gap.
NAN reports that the 52nd/61st meetings which revolve around the theme “Mobilising Africa’s Development Financing at Scale in a Fragmented World,” focusing heavily on overcoming development funding gaps and promoting domestic capital mobilisation, ends on Friday Nigeria’s Eurobonds Yield Shrinks as African Issuers Rally
