The Executive Secretary of Economic Commission for Africa (ECA), Mr Claver Gatete, says that Africa holds over 1.1 trillion dollars in domestic institutional capital, should be strategically deployed to finance its transformation.
Speaking virtually at the on-going Ninth Africa Business Forum convened by the ECA in Addis Ababa, Ethiopia, Gatete said that although Africa faced infrastructure-financing gaps and lost billions annually to illicit financial flows, it was not short of capital, but lacked mechanisms to connect available funds to bankable projects.
“Africa holds over 1.1 trillion dollars in domestic institutional capital in pension funds, insurance pools and sovereign assets.
“The paradox, therefore, is not a lack of capital, but the lack of mechanisms that connect capital to bankable projects,” he said.
According to him, global capital has become more selective, flowing to markets that offer scale, security and future growth prospects.
He said Africa, with the world’s youngest workforce, rapid urbanisation, expanding digital adoption and emerging consumer markets, was well positioned to become a major engine of global growth.
“That place is Africa. Africa is no longer a continent waiting for transformation; transformation is already underway,” Gatete said.
He cited the African Continental Free Trade Area (AfCFTA) as a major milestone in creating a single market of over 1.5 billion people.
According to him, digital platforms and startup ecosystems are also expanding across the continent.
Gatete, however, said the pace of transformation remained below potential due to infrastructure gaps and weak project preparation frameworks.
Speaking on the theme of the event, “Financing the Future of Africa: Jobs and Innovation for Sustainable Transformation””, Gatete emphasised that millions of young Africans entered the labour market every year and that productive employment for them was critical not only for Africa’s development but also for global economic stability.
“If they find productive employment, Africa becomes the growth frontier of the century. If they do not, instability becomes globalised,” he said.
Gatete proposed four strategic measures to accelerate progress: scaling domestic capital and deploying innovative financing instruments; strengthening credit ratings and capital markets; fully implementing the AfCFTA; and investing in innovation, skills and data systems.
According to the ECA boss, improved tax systems, blended finance, pension funds and sovereign assets can help expand fiscal space and support infrastructure and industrial development.
Gatete called for stronger credit ratings, enhanced financial transparency and deeper capital markets to lower borrowing costs and channel investment into productive sectors.
He urged full implementation of the AfCFTA to enable regional value chains, large-scale production and job creation across the continent.
GIK/APA