The African Private Capital Association has urged increased investment in infrastructure, local value addition and domestic capital mobilisation to strengthen African businesses and build more resilient economies. The call came at the organisation's Sustainable Investing in Africa Summit, which brought together leaders in the global private capital industry to examine investment priorities amid economic volatility and geopolitical uncertainties.
Abi Mustapha-Maduakor, chief executive officer of AVCA, said sustainable investment remained critical to Africa's long-term growth and resilience. She argued that sustainability was far more than an investment label but a vital pathway to resilience and long-term value creation. "The question isn't whether we can afford to invest sustainably; it's whether we can afford not to," she said.
Participants highlighted Africa's shifting position in global affairs. British A. Robinson, chair of Africa at the Milken Institute, said Africa was increasingly positioned to engage with different global economic powers rather than align with any particular bloc. "Africa is now a swing actor. It can partner with anyone," she said, adding that the continent could choose to work with the world rather than being confined to particular relationships.
Panellists including 'Tokunboh Ishmael, co-founder and managing partner of Alitheia Capital, and Sofiane Lahmar, chief executive officer of Development Partners International, stressed the importance of domestic capital in supporting sustainable economic growth. Matthieu Ducorroy, head of equity and funds division at the European Investment Bank, described private capital as an important link between Africa and Europe, noting that Africa's resilience went hand in hand with that of Europe.
A key focus of discussions was moving Africa away from dependence on raw material exports towards local processing, manufacturing and stronger supply chains. Saima Rehman, senior investment officer for private equity funds at the International Finance Corporation, said retaining and processing raw materials locally would create jobs, strengthen domestic businesses and expand the tax base. "The true transformation of the continent lies in shifting from an extraction economy to a localised supply chain economy," she said.
Ishmael stressed that infrastructure financing must extend beyond individual businesses to the systems and value chains that support their growth, highlighting the need for a comprehensive approach to building Africa's economic foundations.