Africa’s $4trn savings must work for its development – AfDB

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The President of the African Development Bank (AfDB), Sidi Ould Tah, says Africa must mobilise its estimated four trillion dollars in domestic savings to finance the continent’s development priorities.

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Ould Tah spoke during a news conference at the end of the 2026 AfDB Annual Meetings in Brazzaville, Republic of Congo.

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The AfDB meetings started on May 25 and ended on May 29.

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He described as major paradox that Africa faced an annual development financing gap of about 400 billion dollars in spite of holding vast financial resources.

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“One of Africa’s greatest paradoxes is that while the continent faces a huge financing gap, it also possesses roughly four trillion dollars in savings that are not invested in development,” he said.

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According to Ould Tah, regulatory barriers and investor concerns over risk continue to limit investments in African projects.

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He highlighted that many pension funds and institutional investors remained cautious because of their obligations to protect contributors’ savings.

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To address this challenge, Tah said the bank was developing risk-mitigation instruments to encourage long-term investment in African economies.

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He cited the African Trade and Development Fund (ATDF) as one of the mechanisms designed to reduce investment risks and attract institutional capital.

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Tah said the AfDB recently increased its participation in the fund’s capital to strengthen investor confidence and attract additional partners.

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He said mobilising African capital was critical to reduce dependence on external financing and achieve economic sovereignty.

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The AfDB helmsman said Africa possessed enormous natural wealth and demographic potential that must be transformed into prosperity.

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Tah said the continent accounted for about 18 per cent of the world’s population and held more than 30 per cent of global mineral resources.

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He, however, said Africa’s contribution to global Gross Domestic Product (GDP), remained disproportionately low.

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“We cannot continue exporting raw materials and importing finished products while expecting different results,” he said.

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Tah stressed the need for large-scale investments capable of supporting industrialisation, job creation and economic transformation.

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He said the Board of the bank had approved the presidency’s roadmap for implementing its four strategic priorities and the new African Financial Architecture.

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The AfDB president said the decisions taken at the Brazzaville meetings reflected a stronger commitment to African-led development financing.

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