KEY POINTS
- African deposit and investment funds endorsed AfDB’s push to reform the continent’s financial architecture and reduce external financing dependence.
- Stakeholders said the initiative would strengthen domestic resource mobilisation and expand institutional investor participation.
- Participants highlighted Africa’s large savings base as a key source of untapped development finance.
MAIN STORY
African deposit and investment funds have endorsed the African Development Bank Group’s initiative aimed at reshaping the continent’s financial architecture and reducing reliance on external financing sources.
The endorsement was made during a session of the African Forum of Deposit Funds held on the sidelines of the 2026 AfDB Annual Meetings in Brazzaville.
The session focused on the role of institutional investors in the New African Financial Architecture for Development (NAFAD), an initiative led by AfDB President Sidi Ould Tah.
Managing Director of the Niger Deposit and Investment Fund, Assoumane Mourjatou, said the initiative would strengthen Africa’s development financing capacity by improving the mobilisation of domestic savings.
She said it would also expand participation of institutional investors and reduce dependence on foreign capital.
“I welcome the African Development Bank’s initiative, which seeks to strengthen African development financing mechanisms through better mobilisation of domestic resources,” she said.
She added that it would enable African countries to access larger pools of capital for development needs.
NAFAD was adopted by African financial institutions under the Abidjan Consensus in April and later endorsed by African leaders at the African Union summit in Addis Ababa.
The framework is designed to channel domestic savings into development projects while strengthening financial institutions and reducing fragmentation within Africa’s financial system.
The AfDB estimates that Africa faces an annual development financing gap of more than 400 billion dollars, despite holding about four trillion dollars in managed savings across pension funds, sovereign wealth funds, insurance firms and other institutions.
Deputy Managing Director of Deposit and Investment Fund, Gabon, Angélique Bouka, said deposit funds play a key role in transforming idle savings into productive investments.
“A country’s sovereignty begins with its ability to mobilise national savings for its priority investments,” she said.
Managing Director of CDG Capital, Mehdi Bouriss, said deposit funds often invest in areas that traditional financiers overlook, including local government projects and strategic sectors.
Director of Financial Management Control at the Deposit and Consignment Fund, Tunisia, Mohamed Salem, said efforts were underway to mobilise diaspora savings for development purposes.
He said diaspora funds could support projects that drive economic transformation and long-term growth.
Participants at the forum stressed the importance of strong legal and regulatory frameworks to ensure deposit funds operate independently and effectively.
They also called for safeguards to limit political interference and reduce investment risks in managing public savings.
The session brought together representatives from several African countries seeking to establish or strengthen deposit funds, alongside existing institutional investors.
It also served as a platform for sharing experiences and best practices across Africa’s investment and asset management ecosystem.
Executive Director for Mobilisation, Partnerships and Communication at the French Development Agency, Adama Mariko, moderated the discussion.
The AfDB Annual Meetings ran from May 25 to May 29.
WHAT’S BEING SAID
“I welcome the African Development Bank’s initiative, which seeks to strengthen African development financing mechanisms through better mobilisation of domestic resources,” said Managing Director of the Niger Deposit and Investment Fund, Assoumane Mourjatou.
“A country’s sovereignty begins with its ability to mobilise national savings for its priority investments,” said Deputy Managing Director of Deposit and Investment Fund, Gabon, Angélique Bouka.
“These institutions support financing for local authorities and strategic sectors that struggle to attract private capital,” said Managing Director of CDG Capital, Mehdi Bouriss.
WHAT’S NEXT
- African countries are expected to expand or establish new deposit funds under the NAFAD framework.
- Policy discussions will continue on improving regulatory frameworks for institutional investors.
- Efforts to mobilise diaspora savings for development projects are expected to scale up.
BOTTOM LINE
The Bottom Line: Africa’s financial reform agenda is increasingly shifting toward mobilising domestic savings rather than external borrowing. The success of NAFAD will depend on how effectively institutional capital is channelled into productive development investments.
