Africa urged to unlock $4 trillion in domestic capital for infrastructure boom

The Africa Finance Corporation (AFC) has called on African governments to tap into over $4 trillion in untapped domestic capital to bridge the continent’s widening infrastructure gap.

In its 2025 State of Africa’s Infrastructure report,the AFC emphasized that pension funds,sovereign wealth funds,commercial banks,and reserves collectively hold the capital needed to transform Africa’s economic landscape. The report highlights over $1.1 trillion in long-term institutional capital,including $455 billion in pension funds and $150 billion in sovereign wealth funds.

Yet,most of this capital remains parked in low-risk,short-term instruments due to legal and regulatory hurdles. “This report provides a practical roadmap for how Africa can channel its significant financial strength into the infrastructure needed to drive industrial transformation,from scaling electricity supply to revitalizing rail and building strategic industries like steel and fertilizers,” said AFC CEO Samaila Zubairu.

With electricity demand surging,the report calls on the governments across Africa to add 16GW of grid-connected capacity annually until 2050. However,in 2024,only 6.5GW was added — far below what is needed to keep pace with growth. The report cites Nigeria as a model,where pension fund investments in infrastructure rose from $6 million in 2015 to over $155 million by early 2025,thanks to credit enhancement tools like InfraCredit. The AFC stressed the urgency of reforming financial regulations,modernizing informal economies,and creating investment-grade instruments to unlock these resources for inclusive,long-term development.