By Precious Wilson Nkandu, COO, AVPA

For decades, Africa’s development story has leaned heavily on foreign aid. While this support has addressed urgent needs, it has also left the continent reliant on external priorities and exposed to global shocks.

A quiet but decisive shift is now underway. Africa is beginning to look inward toward its own pension funds, sovereign wealth funds, and domestic pools of capital to chart a sustainable, secure, and self-determined path to growth.

Together, these funds hold more than a trillion US dollars. This is not speculative money; it represents the hard-earned savings of millions of workers and the hopes of future generations. Patient and long-term by design, this capital is precisely what Africa needs to invest in clean energy, infrastructure, healthcare, and climate resilience.

This moment is not only about new financing, but also a new mindset: from dependence on aid to ownership of Africa’s economic destiny. The question is no longer whether Africa can finance its future, but how quickly it can scale its own capital to do so.

The opportunities are clear. Pension and sovereign wealth funds can anchor blended finance vehicles that crowd in private investors. They can back impact-driven funds that support small businesses, affordable housing, and inclusive healthcare. They can help close Africa’s infrastructure gap while ensuring sustainability and local accountability.

Yet, barriers remain. Regulations in many countries restrict pension fund allocations to low-risk assets. Institutional investors often lack the expertise to structure innovative or impact-focused investments. And without greater cross-border coordination, Africa’s capital remains fragmented while urgent projects go unfunded.

To unlock this potential, policymakers must craft enabling rules that strike a balance between fiduciary duty and development priorities. Fund and asset managers must design vehicles that combine competitive returns with measurable impact. Platforms like AVPA can convene investors, regulators, and development actors to share ideas, build trust, and chart pathways for domestic capital to drive inclusive growth.

Aid will continue to play a role, but increasingly as a catalyst that multiplies the impact of Africa’s own resources. Suppose pension and sovereign wealth funds embrace their role as long-term, transformational investors. In that case, they will not only safeguard members’ savings but also help secure a more resilient and self-reliant Africa.