Ahead of the Africa Financial Summit (AFIS) in Casablanca, Morocco, the International Finance Corporation (IFC) is urging African investors to channel more of the continent’s wealth into local industries, a move it said is critical to reducing dependence on foreign aid and external debt.
“Development institutions alone cannot meet the financing gap. We must unlock private capital at a scale that can truly transform economies,” said IFC Vice President for Africa Ethiopis Tafara during a media roundtable in Nairobi.
Sub-Saharan Africa’s investment rate averaged 22 per cent of gross domestic product between 2010 and 2021, compared with East Asia’s 35 per cent.
Economists cite low domestic savings and underdeveloped capital markets as key constraints.
Tafara noted that mobilising local investors could strengthen economies and help protect them from external shocks.
He said new partnerships and funding vehicles are expected to be announced at AFIS, scheduled for two days between November 3-4 in Casablanca, Morocco.
The summit, co-hosted by IFC and Jeune Afrique Media Groupe, a Paris-based pan-African media organisation, will bring together financial leaders, policymakers and investors to discuss ways to keep more of Africa’s savings invested locally.
IFC is expected to unveil initiatives to expand local capital flows into infrastructure, energy, agribusiness and manufacturing sectors viewed as critical to creating jobs for Africa’s fast-growing workforce.
Kenya’s financial sector is central to the effort. Nairobi hosts IFC’s Africa headquarters, and Tafara, who was appointed in May, oversees a portfolio worth $17 billion (Sh2.2 trillion) across the continent.
In Kenya, IFC manages $1.3 billion (Sh168.4 billion) in investments spanning energy, manufacturing, agribusiness and digital sectors.
Tafara observed that Nairobi’s growth in financial technology and pension reforms could position the city as a regional capital hub if new funding mechanisms are anchored locally.
“We’re working with governments and the private sector to channel Africa’s own capital into high-impact sectors. That’s how we build resilience and create jobs,” he added.
IFC said it is also expanding work in fragile and conflict-affected countries and advising governments on sustainable infrastructure and climate resilience.
