AFC African fees to open $ 4Tr domestic savings for infrastructure development

Africa has been urged to increase the push rate of infrastructure that is needed by unlocking at least $ 4 trillion in domestic savings in banking assets, institutional funds and reserves.

Africa Finance Corporation (AFC) made a call in a report entitled African State Infrastructure Report 2025: Mobilizing domestic capital released in Lagos on Thursday.

Corporations estimate that the African domestic capital base includes $ 2.5 trillion in commercial banking assets and around $ 1.5 trillion in the non-sacrificial sector.

This savings underline AFC’s belief in the investment capacity led by Africa as a basis for increasing the provision of power, transportation, and industrialization throughout the continent.

Completed that regardless of this resource scale, most investments are allocated for low -risk and short -term instruments rather than channeled into real economies.

Commenting on these findings, Samaila Zubairu, the President & CEO of AFC, said: “This report provides a practical road map on how Africa can channel its significant financial strength into the infrastructure needed to encourage industrial transformation – from electricity supply scaling to revitalize rails and build strategic industries such as steel and fertilizer.

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“There is a tool. Capital is available. What is needed now is a coordinated action to open it.”

AFC further identifies steel, fertilizer, and oil purification as the three most important strategic industrial inputs in Africa – Huyung is dominated by around $ 300 billion annual imports but mature for the addition of domestic values.

As a result of the shortage of local production, Africa currently only consumes 24 kg of steel per capita, compared to an average global 219 kg, and 23 kg of fertilizer per hectare, compared to 140 globally. In particular, the ore-to-man-design supply chain is a large industrial opportunity that has not been utilized and but aware of its potential will require a liaison that expands the supply of iron ore in West Africa with the process of processing and growth in the consumption market throughout the continent.

AFC calls for coordinated investment in energy, transportation, and logistics to open competitiveness in these sectors and row regional production centers.

“We think there is no debate about whether Africa has a lot of savings-there is a lot of money on the continent,” Rita Babihuga-Nsanze, the head of economist and research head in AFC was revealed while adding that the estimated $ 4 trillion was “super conservative” because of data gaps in several countries.

The question for Africa is how to use the money it has, he said.

By: Babajide Okeowo