The United Nations Economic Commission for Africa (ECA) has disclosed that Africa controls more than $1.1 trillion in domestic institutional capital that must be strategically mobilised to drive the continent’s economic transformation.
Executive Secretary, Claver Gatete made the remark virtually during the Ninth Africa Business Forum organised by the commission in Addis Ababa, Ethiopia.
The forum, themed “Financing the Future of Africa: Jobs and Innovation for Sustainable Transformation,” focuses on unlocking investment for long-term growth.
Gatete noted that despite persistent infrastructure-financing gaps and billions of dollars lost annually to illicit financial flows, Africa is not short of capital but lacks effective mechanisms to channel available funds into viable, bankable projects.
“Africa holds over $1.1 trillion in domestic institutional capital in pension funds, insurance pools and sovereign assets.
The paradox is not a lack of capital, but the lack of mechanisms that connect capital to bankable projects,” he said.
He explained that global investors have become increasingly selective, directing capital toward markets that demonstrate scale, security, and strong growth prospects.
According to him, Africa’s youthful workforce, rapid urbanisation, expanding digital adoption, and rising consumer markets position it as a future engine of global economic expansion.
“Africa is no longer a continent waiting for transformation; transformation is already underway,” Gatete stated.
He identified the African Continental Free Trade Area as a landmark initiative capable of creating a single market of more than 1.5 billion people, while highlighting the rapid growth of digital platforms and startup ecosystems across the continent.
However, the ECA chief cautioned that the pace of transformation remains below potential due to infrastructure deficits and weak project preparation frameworks.
He stressed that millions of young Africans enter the labour market each year, making productive employment essential not only for regional prosperity but also for global economic stability.
“If they find productive employment, Africa becomes the growth frontier of the century. If they do not, instability becomes globalised,” he warned.
To accelerate progress, Gatete outlined four priorities: scaling domestic capital through innovative financing instruments, strengthening credit ratings and capital markets, fully implementing the AfCFTA, and investing in innovation, skills, and data systems.
He added that improved tax systems, blended finance, pension funds, and sovereign assets could expand fiscal space while supporting infrastructure and industrial development. Stronger credit ratings, enhanced financial transparency, and deeper capital markets, he said, would help lower borrowing costs and direct investments into productive sectors.
Gatete also urged African countries to fully operationalise the AfCFTA to foster regional value chains, enable large-scale production, and boost job creation.
On innovation, he called for expanded STEM education, increased research and development, and stronger entrepreneurial ecosystems to prepare young Africans for future industries.
“The opportunity cost of not investing in Africa will soon exceed the risk of investing in it,” he said, adding that the forum was designed to connect investors with bankable projects and ensure commitments are tracked through implementation mechanisms.
He reaffirmed the commission’s commitment to working with partners to translate pledges into measurable outcomes that will generate jobs, scale enterprises, and finance value chains across the continent.
