Despite an estimated annual infrastructure funding shortfall of between 50 and 90 billion dollars, Africa has significant savings that can be mobilised. The development of capital markets appears to be a key means of financing businesses and reducing dependence on external funding.
African capital markets are still struggling to mobilise the resources needed to finance the continent’s economic development. In 2026, the infrastructure financing gap is estimated at between 50 and 90 billion US dollars a year, according to figures commonly cited by development institutions. Yet African institutional investors, particularly pension funds and insurance companies, held around 1.1 trillion US dollars in assets in 2024, according to the Organisation for Economic Co-operation and Development (OECD). This represents significant financial potential, but its mobilisation remains constrained by low market liquidity, fragmentation and the limited range of financing instruments available to businesses.
Well-functioning capital markets constitute a very strong linchpin of that successful economic story. There are hundreds of billions of dollars that are needed across the continent to fund infrastructure, to fund education, to fund health, but also, very importantly, to fund private sector growth.
Sunil Benimadhu, Former Chief Executive, Stock Exchange – Mauritius
To strengthen this financing capacity, reforms are focusing on diversifying investment instruments, modernising stock market infrastructure and developing local currency bond markets. According to the OECD, outstanding African corporate bonds fell from 52 billion US dollars in 2010 to 38 billion in 2024. Only 21 of Africa’s 54 countries have recorded at least one domestic corporate bond issuance since 2000. The challenge is therefore to broaden businesses’ access to financial markets, facilitate transactions between African stock exchanges and reduce dependence on foreign currency financing.
We look at capital markets development as a tool for mobilising external financing, both domestic and international, for foundation priorities. So I think that a weak, sovereign creditworthiness constrains development capital and not just commercial capital.
Iftin Fatah , Senior Program Officer, Gates Foundation – Somalia
Achieving these ambitions will nevertheless depend on regulatory reforms and greater regional financial integration. The October 2026 stock market listing of Nigeria’s Dangote refinery, valued at 1.6 billion US dollars, has highlighted the obstacles facing investors seeking to participate in financial transactions across African countries. Harmonising regulations, improving transparency and strengthening the interoperability of market infrastructure are therefore essential to attracting more capital. The ultimate goal is to turn African savings into productive investment, support businesses and infrastructure development, and strengthen the continent’s financial autonomy.
Source: africa24tv.com
