Africa Finance Corporation Boosts Efforts to Mobilize Domestic Capital

The Africa Finance Corporation (AFC) is ramping up efforts to mobilize domestic capital for investment while seeking funds from the Middle East and Asia, as developing nations face shifting global financial dynamics.

Samaila Zubairu, CEO of the AFC—a development finance institution owned by Nigeria’s central bank and other African financial entities—said the lender is prepared to navigate a world where U.S. and European aid is dwindling.

“The key change we want to see is greater availability of domestic capital for investment within Africa,” Zubairu said. The AFC aims to channel $15-$20 billion from African pension funds and institutional investors into local projects over the long term.

Africa’s low savings rates and shallow financial markets have hindered efforts to tap domestic resources. However, the AFC, which deploys $2.5-$3 billion annually, is cautiously scaling up its fund allocations by selecting projects that can attract additional investors.

One such initiative is InfraCredit, a pilot program supporting pension fund investments in infrastructure, backed by guarantees from Nigeria’s sovereign wealth fund. The project has mobilized 230 billion naira ($152 million) from 21 pension funds, which previously invested almost exclusively in government debt. Zubairu expects to replicate similar programs in Botswana, Angola, and Kenya as early as this year.
“This is the kind of initiative we need to scale up,” he said. “With more programs like this, we can unlock billions for investment.”

African pension funds have also contributed to the Infrastructure Climate Resilience Fund, alongside a $52 million commitment from the European Investment Bank. Investors from the Gulf and Europe are increasingly interested in AFC-led projects, such as ARISE Integrated Industrial Platforms, which finances and develops industrial projects.

Meanwhile, U.S. President Donald Trump’s “America First” policy and cuts to foreign aid threaten to drain billions from African development initiatives. European countries are also shifting aid priorities, with Britain redirecting funds to defence spending.
Washington has yet to outline its investment plans for the Lobito Corridor—a railway project linking the resource-rich Democratic Republic of Congo with Zambia and Angola’s Atlantic port of Lobito.

Reuters/Patience Ameh