AFIS 2025 Sets a New Trajectory for Africa’s Finances
The Africa Financial Industry Summit (AFIS) 2025 opened in Casablanca with a bold call: Africa must look inward and mobilize its own capital to drive sustainable growth. The inaugural panel set the tone, stressing that external funding will remain essential, but it is domestic resources—seeded by policy reforms, more robust capital markets, and greater private sector participation—that will sustain long-term development across the continent.
Mobilizing Domestic Capital: The Core Message
Leaders on the panel argued that Africa’s growth potential hinges on unlocking domestic savings and channeling them into productive investments. They highlighted several pathways: expanding local pension funds and sovereign wealth pools, deepening bond and equity markets, and creating instruments that better match the risk profiles of infrastructure and manufacturing projects. The underlying goal is not just more funding, but smarter funding—capital that aligns with Africa’s development priorities and offers predictable, long-horizon returns.
Policy Reforms to Enable Local Investment
Participants identified a suite of reforms to make domestic capital more investable. These include simplifying regulatory processes, improving creditor rights, and offering targeted incentives to encourage long-term savings to flow into local projects. They also called for greater transparency and better corporate governance to attract domestic and regional investors who may otherwise seek safer markets elsewhere.
The discussion stressed a pragmatic balance: maintain fiscal discipline while expanding the risk-taking capacity of local investors through well-structured mandates and risk-based pricing. Such reforms, the leaders argued, would reduce Africa’s reliance on volatile external capital cycles.
Infrastructure and Private Sector Collaboration
Infrastructure remains the most compelling use case for mobilized domestic capital. Panelists outlined pipelines for energy, transport, and logistics that could be funded by a mix of regulatory reforms and innovative financing structures, such as blended finance and credit enhancement. A stronger private sector, supported by clearer rules and a more predictable investment climate, is essential to convert savings into tangible projects with social and economic returns.
Financing Inclusive Growth
Beyond mega-projects, AFIS 2025 emphasized that domestic capital must reach small and mid-sized enterprises. Strengthening local banks, credit cooperatives, and fintech platforms can widen access to finance for SMEs, farmers, and women-led businesses. The aim is inclusive growth: when more Africans have access to affordable credit, communities thrive, and the broader economy gains resilience against global shocks.
What This Means for Africa’s Economic Narrative
Casablanca’s opening panel framed a future where Africa’s financial systems are more deeply rooted in local wealth and governance. By mobilizing domestic capital, the continent can reduce exposure to global capital fluctuations, accelerate job creation, and enhance resilience to external risks. The conversation signals a shift from dependency on external aid toward a sustainable model driven by domestic savings, smart policy, and a dynamic private sector.
Looking Ahead
As AFIS 2025 progresses, stakeholders will watch closely for concrete commitments—national reform agendas, capital market development milestones, and partnership frameworks that translate commitments into funded projects. If the discussions translate into action, Africa could unlock a durable source of capital that powers growth, closes financing gaps, and strengthens financial inclusion across the continent.
