AfDB seeks to mobilise $4 trillion of local capital to close $400 bn funding gap

The African Development Bank announced that it is in talks with financiers to mobilise roughly $4 trillion of dormant domestic capital across the continent. President Sidi Ould Tah presented the strategy at the S&P Emerging Markets conference in London, emphasizing better coordination among Africa-based pension funds, banks and capital-market actors to improve risk allocation. The bank will also roll out a programme to assist African governments in preparing for credit ratings and enhancing data transparency, aiming to reduce the perception of high risk and the associated borrowing costs.

This initiative is designed to address a development financing gap that policymakers estimate at $400 billion per year. By tapping local sources, the AfDB hopes to lessen reliance on external lenders and make funding more affordable for African nations.