As a continent, Africa’s development story is often told through the lens of aid and external investment. Yet beneath the surface lies a powerful but underutilized resource: domestic capital. Pension funds, insurance reserves, sovereign wealth funds, and diaspora remittances together represent hundreds of billions of dollars. But much of this capital remains locked in low-yield, offshore or risk-averse investments, while Africa’s most urgent priorities, from infrastructure to healthcare to climate resilience, remain underfunded.
This begs a critical question: how do we channel Africa’s money into impact? At the 2025 AVPA Conference, participants and stakeholders will explore how to unlock this domestic capital for scalable, inclusive, and sustainable growth.
Africa’s capital paradox is striking: vast liquidity on one side, unmet financing needs on the other.
According to the African Development Bank, the continent faces an annual financing gap of $200–300 billion to meet its development priorities. At the same time, African institutional investors collectively manage more than $1 trillion in assets, most of which remain under-invested in African markets.
Why is this the case? Because of structural barriers:
- Risk perception that deters institutional investors from high-impact sectors.
- Limited availability of investable projects with track records.
- Regulatory restrictions that limit pension and insurance allocations.
- A weak ecosystem for blended finance and guarantees.
The tide, however, is beginning to turn. Across the continent, innovative mechanisms are showing how domestic capital can be mobilized more effectively:
- Pension Fund Reforms: Countries like Kenya, Nigeria, and South Africa are expanding the scope for pension funds to invest in infrastructure and impact sectors, while ensuring safeguards for contributors.
- Diaspora Engagement: With remittances exceeding $95 billion annually, new vehicles are emerging to channel this capital into structured, long-term investment opportunities.
- Fintech Solutions: Digital platforms are democratizing access to capital markets, allowing smaller investors to pool funds into infrastructure, SMEs, and green projects.
- Blended Finance Instruments: First-loss guarantees and concessional capital structures are reducing risk for institutional investors and enabling private participation.
These models highlight that the issue is not scarcity of capital, but the design of instruments and policies that can channel funds where they are needed most.
Domestic Capital in Action at the 2025 AVPA Conference
This year, the AVPA Conference will catalyze this shift. Key sessions will spotlight:
- Successful models of mobilizing pensions and insurance funds into African infrastructure.
- Strategies for unlocking diaspora capital into scalable investment vehicles.
- Case studies of blended finance instruments that have de-risked domestic investment.
- Policy dialogues that explore how governments, regulators, and DFIs can enable the ecosystem.
The conference will turn the conversation on domestic capital into actionable pathways for impact, where Africa’s future does not solely depend on external capital. By mobilizing its own resources, the continent can unlock the scale of investment needed to drive inclusive, sustainable development.
The time for this shift is now. Join us in Nairobi this November to be part of the movement that places Africa’s capital at the heart of Africa’s future.