The president of the African Development Bank (AfDB), Sidi Ould Tah, says Africa must mobilise its estimated four trillion dollars in domestic savings to finance the continent’s development priorities.

Mr Ould Tah spoke during a news conference at the end of the 2026 AfDB Annual Meetings in Brazzaville, Republic of Congo.

The AfDB meetings started on May 25 and ended on May 29.

He described it as a major paradox that Africa faced an annual development financing gap of about 400 billion dollars in spite of holding vast financial resources.

“One of Africa’s greatest paradoxes is that while the continent faces a huge financing gap, it also possesses roughly four trillion dollars in savings that are not invested in development,” he said.

According to Mr Ould Tah, regulatory barriers and investor concerns over risk continue to limit investments in African projects.

He highlighted that many pension funds and institutional investors remain cautious because of their obligations to protect contributors’ savings.

To address this challenge, Mr Ould Tah said the bank was developing risk-mitigation instruments to encourage long-term investment in African economies.

He cited the African Trade and Development Fund (ATDF) as one of the mechanisms designed to reduce investment risks and attract institutional capital.

Mr Ould Tah said the AfDB recently increased its participation in the fund’s capital to strengthen investor confidence and attract additional partners.

The AfDB helmsman said Africa possesses enormous natural wealth and demographic potential that must be transformed into prosperity.

Mr Ould Tah said the continent accounts for about 18 per cent of the world’s population and holds more than 30 per cent of global mineral resources.

He, however, said Africa’s contribution to global Gross Domestic Product (GDP) remained disproportionately low.

“We cannot continue exporting raw materials and importing finished products while expecting different results,” he said.

Mr Ould Tah stressed the need for large-scale investments capable of supporting industrialisation, job creation and economic transformation.

He said the Board of the bank had approved the presidency’s roadmap for implementing its four strategic priorities and the new African Financial Architecture.

The AfDB president said the decisions taken at the Brazzaville meetings reflected a stronger commitment to African-led development financing. 

(NAN)