Omolabake Fasogbon
The African Private Capital Association (AVCA) has called for increased investment in infrastructure, local value addition and domestic capital mobilisation to strengthen African businesses and build more resilient economies.
The call was made at its Sustainable Investing in Africa Summit, which brought together leaders in the global private capital industry to examine investment priorities amid economic volatility and geopolitical uncertainties.
Chief Executive Officer of AVCA, Abi Mustapha-Maduakor, said sustainable investment remained critical to Africa’s long-term growth and resilience.
“While sustainability is being questioned, redefined or deprioritised in some parts of the world, it has never been more relevant in Africa. It is far more than an investment label; it is a vital pathway to resilience and long-term value creation. The question isn’t whether we can afford to invest sustainably; it’s whether we can afford not to,” she said.
Speaking on how geopolitical realignments are shaping investment decisions, Chair, Africa at the Milken Institute, British A. Robinson, stated that Africa was increasingly positioned to engage with different global economic powers rather than align with any particular bloc.
“Africa is now a swing actor. It can partner with anyone. Africa is not just choosing the US, or choosing a particular country in Asia. It can choose the world, and the world can choose it. And that is different,” she said.
Other panellists, including Co-Founder and Managing Partner of Alitheia Capital, ‘Tokunboh Ishmael, and Chief Executive Officer of Development Partners International, Sofiane Lahmar, stressed the importance of domestic capital in supporting sustainable economic growth.
Head of Equity and Funds Division at the European Investment Bank, Matthieu Ducorroy, described private capital as an important link between both regions, noting that Africa’s resilience went hand in hand with that of Europe.
Discussions also focused on the need to move Africa away from dependence on raw material exports towards local processing, manufacturing and stronger supply chains.
Senior Investment Officer for PE Funds at the International Finance Corporation, Saima Rehman, said retaining and processing raw materials locally would create jobs, strengthen domestic businesses and expand the tax base.
“The true transformation of the continent lies in shifting from an extraction economy to a localised supply chain economy. Keeping raw materials at home to be processed is how we generate sustainable local jobs, empower domestic companies, and build a genuine, resilient tax base,” she said.
On infrastructure financing, Ishmael said investment must extend beyond individual businesses to the systems and value chains that support their growth.