Speaking during a panel discussion titled \u201cGovernment and the Future of Investment: An African Perspective,\u201d Dr Akinwumi Adesina, former President of the African Development Bank Group, said Africa stood \u201cat a defining crossroads\u201d and must seize the opportunity to unlock private capital on its own terms.<\/p>\n
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In an interview with Channel Africa, Adesina said aid\u2011driven development had reached its limits, warning that it left countries vulnerable and unable to chart their own priorities. \u201cAid is not the way to grow,\u201d he said. \u201cIt 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\u2011led growth is the way forward.\u201d<\/p>\n
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He highlighted that, according to International Monetary Fund projections, Africa is currently the fastest\u2011growing region in the world and is expected to hold that position for the next four consecutive years. He added that infrastructure and real\u2011asset investments in Africa have delivered strong returns over the past decade, demonstrating that \u201cAfrica is investable\u201d and should be positioned as an investment\u2011driven destination rather than one reliant on external aid.<\/p>\n
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Turning to the question of challenges African governments face in attracting long\u2011term investment, Adesina said policy predictability was essential. Investors did not expect perfection, he argued, but they needed clear, stable and transparent rules.<\/p>\n
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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\u2011friendly environment.<\/p>\n
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Adesina also stressed that capital flows depended on trust. \u201cInvestors are not afraid of losing money,\u201d he said. \u201cThey are afraid of not being able to get their money out.\u201d Ensuring repatriation of profits, clarity of regulations and efficient customs systems were therefore as crucial as macroeconomic stability.<\/p>\n
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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\u2011finance arrangements that help reduce the cost of capital.<\/p>\n
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He added that risk\u2011mitigation tools such as partial credit guarantees, political risk insurance and local\u2011currency hedging instruments were essential to attract private investment into infrastructure and other long\u2011term sectors. However, he said the continent still needed to scale up mechanisms that de\u2011risk projects, close viability gaps and address political\u2011risk barriers.<\/p>\n
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Asked where the strongest opportunities lie for transformative foreign investment, Adesina identified energy as the foundation of African growth and emphasised agriculture\u2019s enormous potential, with the continent holding 65% of the world\u2019s remaining uncultivated arable land. He also underscored the strategic importance of Africa\u2019s minerals, saying the continent holds an estimated $6 trillion worth of reserves in critical minerals and rare earths essential for the global energy transition.<\/p>\n
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However, he warned against repeating historical patterns of exporting raw materials, calling it \u201cthe door to poverty.\u201d 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\u2011risked investment platforms.<\/p>\n
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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.<\/p>\n
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\u201cAfrica does not have to give away its assets,\u201d he said. \u201cIt 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\u2019s young people.\u201d<\/p>\n
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He added that the Global Africa Investment Summit was working precisely to ensure that investments are transparent, beneficial and aligned with Africa\u2019s development priorities.<\/p>\n
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Adesina closed by insisting that Africa\u2019s shift from aid to investment should be anchored in sovereignty, good governance and sustainable growth. \u201cThe safeguards are there. This must work for Africa, not simply for someone else,\u201d he said.<\/p>\n
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–ChannelAfrica–<\/p>\n","protected":false},"featured_media":13096,"template":"","meta":{"_acf_changed":false,"_links_to":"","_links_to_target":""},"news-type":[44],"class_list":["post-23369","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"As the 2026 World Governments Summit concluded in Dubai on Thursday, African leaders and financial experts intensified calls for the continent to move decisively away from aid dependency and embrace a future built on investment\u2011led growth. ","published_date":null,"news_description":"As the 2026 World Governments Summit concluded in Dubai on Thursday, African leaders and financial experts intensified calls for the continent to move decisively away from aid dependency and embrace a future built on investment\u2011led growth. ","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/23369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/23369\/revisions"}],"predecessor-version":[{"id":26355,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/23369\/revisions\/26355"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/13096"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=23369"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=23369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}