BRAZZAVILLE, May 27 – The African Development Bank says African economies could unlock hundreds of billions of dollars in additional development financing through stronger reforms, improved investment management and more effective domestic resource mobilization.
The assessment was published in the bank’s 2026 African Economic Outlook report released during the institution’s annual meetings in Brazzaville.
The report, themed “Mobilizing Africa’s Development Financing at Scale in a Fragmented World,” highlights growing fiscal pressures facing African countries while also identifying major financing opportunities capable of supporting long-term infrastructure and economic development.
According to the AfDB, African governments could generate approximately $469 billion in additional annual revenues through improved tax collection systems, broader non-tax revenue reforms and stronger fiscal administration.
The bank also estimated that African countries could save up to $299 billion each year by improving public investment efficiency and reducing waste across infrastructure and development spending.
The report argued that better project execution and stronger governance frameworks could significantly increase the economic impact of public expenditure across the continent.
The AfDB further stated that stronger public-private partnership structures could help attract additional private capital into development projects.
According to the report, every additional dollar invested publicly could potentially mobilize roughly $1.40 in private-sector investment if supported by effective partnerships and investment frameworks.
The bank also pointed to the large pool of global institutional capital that remains largely untapped by African economies.
Institutional investors worldwide, including pension funds, insurance firms and sovereign wealth funds, currently manage nearly $4 trillion in assets, yet less than 2.7% of that capital is directed toward African infrastructure and productive sectors.
The report described the low allocation as a major missed opportunity for a continent facing substantial infrastructure financing gaps and rising development needs.
The findings come as African policymakers increasingly seek alternative financing strategies amid tightening global financial conditions, declining aid flows and growing debt pressures across several economies.
The AfDB said strengthening domestic financing systems and improving investor confidence will be critical to accelerating Africa’s economic transformation in the coming decades.
