African leaders have formally launched the Africa Infrastructure Financing Facility in a bid to transform the continent’s estimated US$2.5 trillion domestic capital base into a coordinated engine for large scale cross border infrastructure development.
The platform was unveiled on 14 February during the Third Presidential High Level Dialogue of African multilateral financial institutions, held on the margins of the 39th African Union Summit. The initiative was jointly created by AUDA-NEPAD and the Alliance of African Multilateral Financial Institutions as part of a broader push to strengthen Africa’s financial architecture.
African policymakers argue that the continent’s development challenge is not rooted in a lack of capital, but in fragmented financial systems that prevent efficient deployment of domestic resources. President John Dramani Mahama, who convened the dialogue and leads the African Union agenda on financial institutions, said Africa holds more than US$2.5 trillion in domestic capital pools, yet struggles to channel those resources into transformative infrastructure, industrialisation and job creation.
Mahama noted that uncoordinated markets and weak financial integration continue to inflate borrowing costs and distort perceptions of risk. According to African Union estimates cited at the event, the continent faces an annual infrastructure financing gap of approximately $221 billion through 2030, despite significant liquidity held by pension funds, sovereign wealth funds, central banks and development finance institutions.
The Africa Infrastructure Financing Facility is designed to close the persistent gap between political approval of major infrastructure schemes and the financial execution required to deliver them. Too often, projects endorsed at continental or regional level fail to reach financial close due to inadequate preparation, poor structuring or misalignment with investor expectations.
Samaila Zubairu, President and Chief Executive Officer of the Africa Finance Corporation and outgoing chair of the alliance, said member institutions collectively manage balance sheets exceeding $70 billion. He argued that coordinated capital deployment and shared strategy could significantly enhance Africa’s ability to fund priority projects rather than operating in institutional silos.
From the trade finance perspective, Dr George Elombi, President of Afreximbank, stressed that many African infrastructure proposals collapse at early stages due to weak project preparation frameworks and inconsistent risk allocation. The new facility aims to pool technical expertise, harmonise risk standards and engage investors earlier in the project lifecycle to improve bankability.
Commissioner Francisca Tatchouop Belobe, representing the African Union Commission, said the launch demonstrates how political will can translate into institutional coordination. She highlighted the urgency of addressing infrastructure bottlenecks that continue to constrain trade, regional integration and industrial growth across the continent.
Incoming alliance chair Dr Corneille Karekezi, Chief Executive of the Africa Reinsurance Corporation, added that Africa’s financial future depends on institutions sharing risk, mobilising domestic savings and crowding in private capital rather than relying excessively on external lenders.
The dialogue concluded with a symbolic milestone when Cameroon formally deposited its ratification of the protocol establishing the African Monetary Fund, an institution intended to promote macroeconomic stability and deepen financial cooperation among African Union member states.
The launch of the Africa Infrastructure Financing Facility signals a deliberate shift toward financial sovereignty and self directed development funding. By targeting domestic capital and aligning it with continental priorities, African leaders are seeking to reduce dependency on external financing structures and reshape the way infrastructure is conceived, prepared and financed.
If effectively implemented, the platform could accelerate strategic transport corridors, power interconnections, digital infrastructure and industrial projects that underpin the African Continental Free Trade Area. The success of the initiative will depend on governance discipline, regulatory harmonisation and sustained political commitment to move beyond declarations toward execution.
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