Investment In Africa, Not Aid, Drives Transformation, Say WGS Leaders

African political leaders and senior financiers at the World Governments Summit 2026 are urging a fundamental shift from aid to capital flows, arguing that long-term investment is essential if the continent is to realise its economic potential and support its fast-growing population.

Speaking during a session titled "Government and the Future of Investment: An African Perspective", panellists debated how African nations can mobilise private finance at a key stage in the continent’s development, while also addressing governance issues and risk perceptions that still limit investor appetite.

The discussion brought together Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania; Maria Benvinda Delfina Levi, Prime Minister of the Republic of Mozambique; and Dr. Akinwumi Adesina, 8th President of the African Development Bank Group, with moderation by John Defterios, former CNN anchor and Strategic Advisor at APCO Worldwide.

Defterios described Africa as standing at a crucial turning point, with an expanding and youthful population, rapid digital connectivity, rich natural resources and a growing tourism sector, but still securing only a limited portion of global foreign direct investment compared with other emerging regions.

Of the $1.6 trillion in worldwide foreign direct investment recorded in 2025, Defterios noted that about $60 billion, or roughly 4 to 5 percent, went to African economies, underscoring the gap between the continent’s asset base and the actual level of committed capital.

Dr. Adesina used these figures to support a clear message that development strategies focused mainly on donor assistance are no longer sufficient. "Africa does not need aid; it needs investment," he said, referencing steady economic growth trends in many African markets.

According to projections from the International Monetary Fund, Africa is expected to expand at around 4 percent annually over the next four years and to maintain one of the highest real GDP growth rates worldwide, which Dr. Adesina described as "structural momentum, not a temporary blip."

Dr. Adesina pointed to successful African and multinational firms already operating on the continent, strong returns from infrastructure assets, and Africa’s relatively low correlation with global public markets, arguing that these factors together make a persuasive case for long-term institutional investors.

He also drew attention to the continent’s critical minerals and other natural resources, valued at an estimated $6 trillion, and stressed that the priority is to convert these assets into structured projects that can generate regular revenues and attract diversified portfolios.

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The session also highlighted detailed national reform efforts, with President Hassan outlining how Tanzania has been seeking to attract more capital through consistent policies, updated regulations and major investments in transport networks that link domestic production with regional markets.

President Hassan described a 2,100-kilometre standard gauge railway designed to connect Tanzania with Burundi and the Democratic Republic of Congo, along with extensive port expansion along the Indian Ocean coastline and at key inland lakes used for regional trade.

"These reforms have created a more predictable and attractive investment environment," President Hassan said, explaining that registered investment projects in Tanzania increased from around 250 in 2018 to nearly 970 now, while their total value rose from $3.8 billion to almost $12 billion.

President Hassan added that these projects have relied on coordinated financing from the African Development Bank, the World Bank and partners including the UAE, reflecting a strategy that combines multilateral loans, bilateral funding and private-sector participation.

Prime Minister Levi focused on Mozambique’s experience with complex energy and infrastructure schemes, noting the restart of the Mozambique LNG development led by TotalEnergies, ExxonMobil’s Rovuma LNG project, ENI-operated floating LNG platforms and a new $5 billion hydroelectric venture with EDF and Sumitomo.

Levi argued that Africa’s main challenge is not the absence of assets but the failure to connect those resources with international capital, calling for better governance standards, stronger risk-sharing tools and improved project preparation to make proposals bankable.

Closing the session, Dr. Adesina highlighted the role of development banks and guarantee mechanisms, and referenced the forthcoming Global Africa Investment Summit as a platform for turning pipelines of African assets into organised, investable portfolios for global investors.

"Africa is not optional; Africa is inevitable," Dr. Adesina said, adding that African leaders now share a focus on moving up value chains and positioning the continent as one of the most appealing regions for sustainable, long-horizon investment.

With inputs from WAM