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Group Mobilises Private Capital To Drive Sustainable Growth In Africa

The African Private Capital Association’s (AVCA) third Sustainable Investing in Africa Summit (SIAS) convened more than 150 global leaders, investors, changemakers, and ecosystem builders to catalyse sustainable investment in Africa.

The one-day summit delved into innovative strategies to mobilise local and global capital, advocating for urgent action on climate change and setting the agenda for inclusive growth across the continent.

In her opening remarks, the CEO, AVCA, Abi Mustapha-Maduakor, addressed Africa’s capacity to originate innovative solutions despite facing challenges. She said: “Africa is rich in creativity, resilience, and potential. However, we face legacy issues such as infrastructure deficits and low financial inclusion. We are witnessing a seismic shift that brings together capital, knowledge, and the brightest minds to align on sustainable pathways to development. Together, we can be catalysts for transformative change.”

A critical theme across all panels was the importance of mobilising domestic capital to complement foreign direct investment (FDI) flows to Africa. Head of Venture and Early Stage Financing Vehicles, FSD Africa Investments, Zee de Gersigny, noted that African domestic investors, particularly pension funds and financial institutions, held around $2 trillion in collective assets which could be mobilised to invest in renewable energy, education, broadband connectivity and water sanitisation among others.

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Panellists pointed to key markets including Kenya and South Africa where regulatory reforms have enabled pension funds to invest in non-traditional asset classes such as infrastructure.

Speakers noted that Africa is a key region where impact investments can yield healthy returns. However, to stimulate investment at the pace and scale needed for Africa to meet the sustainable development goals (SDGs), investors need to re-imagine what successful investment in Africa looks like.

Head of Social Impact and Philanthropy, UBS, Tom Hall, said: “The power of partnerships is crucial in mobilising capital efficiently, and we need innovative blended finance solutions that we can scale. By aligning financial returns with transformrdiantive impact, we can channel significant resources to tackle Africa’s most pressing challenges.”

Co-founder and Managing Director, Alitheia Capital, ‘Tokunboh Ishmael, said: “It’s important to redefine “returns” to value impact alongside financial gains, rather than comparing African investments to those in Silicon Valley”.

Co-founder and Chief Executive Officer of Development Partners International, Runa Alam, added: “Impact for us is defined by job creation, gender equity and financial inclusion. We hold financial returns and impact as equally important because we need to do both in Africa.”

Source: Guadian

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