{"id":59257,"date":"2025-07-18T19:47:57","date_gmt":"2025-07-18T19:47:57","guid":{"rendered":"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-financial-sovereignty-and-institutional-capital"},"modified":"2025-07-18T20:17:32","modified_gmt":"2025-07-18T20:17:32","slug":"africas-financial-sovereignty-and-institutional-capital","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-financial-sovereignty-and-institutional-capital","title":{"rendered":"Africa\u2019S Financial Sovereignty and Institutional Capital"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; Lesotho. <\/strong><\/span>As global capital flows evolve and development assistance dwindles, Africa finds itself at a critical point. On 28 May, during the African Development Bank Group\u2019s 2025 Annual Meetings, senior leaders, policymakers and financial experts gathered to chart a new course for the continent\u2019s financial future \u2013 one based on mobilizing and deploying African resources and ingenuity.<\/p>\n<p>Organized by the Bank Group\u2019s Resource Mobilization and Partnerships Department, in collaboration with the Bank\u2019s Making Finance Work for Africa initiative, this side event brought together leading African experts in a conversation moderated by Victor Oladokun, Senior Advisor to the President of the African Development Bank Group for Communication and Stakeholder Engagement.<\/p>\n<p>With a 10 percent decline in development assistance and a 12 percent drop in foreign direct investment to USD 40 billion {in what period, and what\u2019s the source of the data?}, the urgency of mobilizing domestic resources is pressing. The continent faces an annual infrastructure funding gap of between USD 68 billion and USD 108 billion, while attracting only 2 percent of global investment in this sector {Source?}.<\/p>\n<p>\u201cThe real question is not whether the capital exists \u2013 it does. The question is how to mobilize it on a large scale for productive, high-impact investments,\u201d said Solomon Quaynor, the African Development Bank Group\u2019s Vice-President for Private Sector, Infrastructure &amp; Industrialization.<\/p>\n<p>He added, \u201cAfrica is not poor. Our institutional investors \u2013 pension funds, sovereign wealth funds, insurance companies, and even central banks \u2013 together manage more than USD 2.1 trillion in assets. If just 5 percent of these funds were directed towards infrastructure and the private sector, it would unlock more than USD 100 billion in long-term capital for the continent.\u201d<\/p>\n<p>Partnerships and innovation<\/p>\n<p>The event highlighted some innovative African-led models for mobilizing institutional capital. For example, InfraCredit Nigeria, a pioneering credit enhancement institution, has secured more than USD 300 million in long-term financing in local currency for infrastructure projects.<\/p>\n<p>\u201cThe real risk associated with infrastructure assets is often overestimated. We have not recorded any losses on a portfolio of more than 20 projects in 12 sectors in eight years,\u201d said Chinua Azubike, CEO of InfraCredit.<\/p>\n<p>Tafara Ethiopis, Vice President of the International Finance Corporation (IFC, the World Bank\u2019s private-sector arm) for Africa, emphasized the need to strengthen the bankability of projects through more effective risk-sharing mechanisms. \u201cIt is essential to calibrate the distribution of risks and benefits between the public and private sectors properly to make projects bankable,\u201d he said.<\/p>\n<p>Speakers also identified obstacles to mobilizing institutional capital and proposed solutions. Boitumelo Mosako, CEO of the Development Bank of Southern Africa (DBSA), highlighted the central role of good governance and rigorous project preparation in lowering risk and improving investor confidence.<\/p>\n<p>The Director General of Nigeria\u2019s Securities and Exchange Commission (SEC), Timi Agama, stressed the importance of building trust through regulatory reforms, investor protection and financial education.<\/p>\n<p>Denis Charles Kouassi, CEO of Co\u0302te d\u2019Ivoire\u2019s National Social Security Fund, underscored the importance of aligning pension funds with national development priorities, saying, \u201cAll the income we generate is reinvested directly into the national economy to finance our services and boost growth.\u201d<\/p>\n<p>A call for collective action<\/p>\n<p>The Resource Mobilization and Partnerships Department of the African Development Bank Group is leading several initiatives aimed at mobilizing African institutional capital, including through instruments such as the Capital Markets Development Trust Fund, and strategic partnerships with regional and global stakeholders.<\/p>\n<p>\u201cYes, we need governance and accountability. But as Africans, we also need to learn to trust each other,\u201d said Mosako.<\/p>\n<p>\u201cThe moment calls for vision. It also calls for innovation. And above all, it calls for action,\u201d Quaynor affirmed, in his concluding remarks. \u201cLet us pool our capital, our ideas, and our will, to build an Africa where infrastructure becomes a lever for prosperity, not a drag on it.\u201d<\/p>\n<p><b>AFFRICNDEVEOLMENT BANK<\/b><\/p>\n<p><strong>For More News And Analysis About <span style=\"color: #ff6600\">Lesotho<\/span> Follow <span style=\"color: #ff6600\">Africa-Press<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Lesotho. As global capital flows evolve and development assistance dwindles, Africa finds itself at a critical point. On 28 May, during the African Development Bank Group\u2019s 2025 Annual Meetings, senior leaders, policymakers and financial experts gathered to chart a new course for the continent\u2019s financial future \u2013 one based on mobilizing and deploying [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":59256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6],"tags":[245],"class_list":["post-59257","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","tag-lesotho"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Africa\u2019S Financial Sovereignty and Institutional Capital - Lesotho<\/title>\n<meta name=\"description\" content=\"As global capital flows evolve and development assistance dwindles, Africa finds itself at a critical point. 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