Speaking during a panel discussion titled “Government and the Future of Investment: An African Perspective,” Dr Akinwumi Adesina, former President of the African Development Bank Group, said Africa stood “at a defining crossroads” and must seize the opportunity to unlock private capital on its own terms.
In an interview with Channel Africa, Adesina said aid‑driven development had reached its limits, warning that it left countries vulnerable and unable to chart their own priorities. “Aid is not the way to grow,” he said. “It is like carrying a walking stick that eventually gets cut from under you. When you develop with your own strategy, you control your priorities, build resilience and attract private capital. Investment‑led growth is the way forward.”
He highlighted that, according to International Monetary Fund projections, Africa is currently the fastest‑growing region in the world and is expected to hold that position for the next four consecutive years. He added that infrastructure and real‑asset investments in Africa have delivered strong returns over the past decade, demonstrating that “Africa is investable” and should be positioned as an investment‑driven destination rather than one reliant on external aid.
Turning to the question of challenges African governments face in attracting long‑term investment, Adesina said policy predictability was essential. Investors did not expect perfection, he argued, but they needed clear, stable and transparent rules.
Sudden policy reversals, weak macroeconomic management, currency volatility and delays in business registration all erode investor confidence. He emphasised that simplified tax regimes, digitalised administrative systems and adherence to the rule of law were core conditions for building an investment‑friendly environment.
Adesina also stressed that capital flows depended on trust. “Investors are not afraid of losing money,” he said. “They are afraid of not being able to get their money out.” Ensuring repatriation of profits, clarity of regulations and efficient customs systems were therefore as crucial as macroeconomic stability.
Reflecting on the performance of African multilateral development banks, including the African Development Bank, Adesina said these institutions had played an important role in mobilising financing, particularly through concessional lending and blended‑finance arrangements that help reduce the cost of capital.
He added that risk‑mitigation tools such as partial credit guarantees, political risk insurance and local‑currency hedging instruments were essential to attract private investment into infrastructure and other long‑term sectors. However, he said the continent still needed to scale up mechanisms that de‑risk projects, close viability gaps and address political‑risk barriers.
Asked where the strongest opportunities lie for transformative foreign investment, Adesina identified energy as the foundation of African growth and emphasised agriculture’s enormous potential, with the continent holding 65% of the world’s remaining uncultivated arable land. He also underscored the strategic importance of Africa’s minerals, saying the continent holds an estimated $6 trillion worth of reserves in critical minerals and rare earths essential for the global energy transition.
However, he warned against repeating historical patterns of exporting raw materials, calling it “the door to poverty.” Instead, he said Africa must structure its mineral assets so that value addition happens on the continent and global investors can participate through transparent, de‑risked investment platforms.
On concerns that increased foreign investment could replace aid with another form of dependency, Adesina said Africa should not fear capital. What mattered, he argued, was ensuring that the continent structured investments on its own terms.
“Africa does not have to give away its assets,” he said. “It simply has to monetise returns while keeping control. Local content must be strengthened, and governance must be robust. The aim is to unlock value for African communities and create jobs for Africa’s young people.”
He added that the Global Africa Investment Summit was working precisely to ensure that investments are transparent, beneficial and aligned with Africa’s development priorities.
Adesina closed by insisting that Africa’s shift from aid to investment should be anchored in sovereignty, good governance and sustainable growth. “The safeguards are there. This must work for Africa, not simply for someone else,” he said.
–ChannelAfrica–
