Africa is regaining the confidence of international investors as a wave of economic reforms improves macroeconomic stability and governance across several countries, according to Standard Chartered’s Africa chief executive.
Dalu Ajene, who leads the bank’s Africa operations, said governments from Nigeria to Uganda have implemented policy changes that are helping to restore investor confidence after years of volatility linked to the COVID-19 pandemic, inflationary pressures and debt stress.
He said reforms including subsidy removals, improved central bank policy credibility, regulatory streamlining and enhanced fiscal transparency have contributed to a shift in sentiment among global investors.
“It’s now attracting both concessionary funding, but also real money investors to be able to now look at Africa in a much more serious way than they otherwise would have three years ago,” Ajene told Reuters.
Standard Chartered, one of the largest international banks operating across Africa, said the continent is increasingly benefiting from a broader mix of capital sources, including export credit agencies, development finance institutions, sovereign wealth funds, private equity firms and hedge funds.
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Ajene said the post-pandemic period had been characterised by “quite deep” financial stress across African balance sheets, which had triggered a risk-off approach among investors. However, he said sentiment has shifted as reforms take hold and macroeconomic conditions stabilise in key markets.
The bank said development finance institutions and export credit agencies have played a major role in reviving cross-border investment flows, particularly through infrastructure and port development projects.
It cited examples such as the UK Export Finance-backed financing of a $1 billion refurbishment project at Tin Can Island Port in Lagos, Nigeria, as part of broader efforts to improve trade infrastructure across the continent.
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Ajene also pointed to renewed interest from global asset managers investing in local-currency sovereign debt markets, particularly in countries such as Egypt, Nigeria, Zambia, Uganda and Ghana.
He said Gulf investment is expected to expand further as economic partnership agreements between Gulf states and African countries begin to take effect. These include agreements involving the United Arab Emirates with Mauritius, Kenya, Morocco and Nigeria.
However, he noted that while Gulf governments may face domestic spending pressures due to ongoing geopolitical tensions, investments in strategic sectors such as energy, mining and food security are likely to continue.
“Once you have the cooperation frameworks, then you can now start seeing the kind of chunky investments that matter,” he said, adding that such agreements could unlock larger-scale deals than previously possible.
Ajene also defended the growing use of structured financial instruments such as total return swaps (TRS), which have been used by some African governments including Angola, Nigeria and Senegal to manage financing needs.
The International Monetary Fund and other institutions have previously raised concerns about transparency and risk exposure associated with such instruments. However, Ajene said they provide flexibility and speed in financing, particularly when traditional markets are constrained.
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He argued that such tools should not be dismissed as inherently opaque or risky, adding that they can complement other financing mechanisms such as private placements and bond issuance.
“It’s actually unfair to say they’re not transparent, and I think it’s also unfair to classify them as more or less risky,” he said.
Standard Chartered confirmed it participates in TRS transactions, though it said deal-specific details remain confidential.
The bank said it expects increased use of such instruments as African governments continue to diversify funding sources amid tighter global financial conditions.
Overall, Ajene said the combination of reforms, improved governance frameworks and diversified funding channels is gradually reshaping how global investors view African markets, shifting the narrative from risk-driven caution to selective opportunity.
