AFC Targets $20bn From African Pension Funds
The Africa Finance Corporation (AFC) is intensifying efforts to mobilize domestic capital for investment across the continent, with a focus on pension funds and institutional investors.
The development finance institution aims to generate between $15bn and $20bn from African pension funds to bridge the region’s infrastructure funding gap.
AFC President and Chief Executive, Samaila Zubairu, emphasized the importance of leveraging local capital to drive sustainable development amid shifting global funding dynamics.
“The only thing we want to change is to get domestic capital more available for investment within the continent,” Zubairu stated.
The AFC, which deploys between $2.5bn and $3bn annually, is scaling up fund allocations prudently by prioritizing projects that can attract additional backers.
InfraCredit has already mobilized approximately N230bn ($152m) from 21 pension funds. Previously, these funds were largely restricted to government debt investments.
Following the success of InfraCredit in Nigeria, the AFC is set to launch similar programs in Botswana, Angola, and Kenya as early as this year. “This is the kind of program that we think needs to be replicated at scale,” Zubairu said. “If we do programs like this, then you see a lot more billions available for investment.”
The push for increased domestic financing comes amid declining financial aid from the United States and Europe.
The shift in global geopolitics, including the U.S. government’s America First policy and the redirection of British aid funds toward defence, has prompted African nations to seek alternative investment sources.
Beyond the continent, the AFC is also engaging investors from the Middle East and Asia to support infrastructure projects. Additionally, international stakeholders, including the European Investment Bank, have contributed to AFC initiatives such as the Infrastructure Climate Resilience Fund, which received an initial commitment of $52m.
Meanwhile, foreign interest in AFC-backed projects continues to grow. Investors from the Gulf and Europe are exploring opportunities within ARISE Integrated Industrial Platforms, a subsidiary focused on designing and financing industrial ventures across Africa.
Despite geopolitical uncertainties, AFC remains committed to mobilizing long-term capital to drive economic growth and infrastructure development.
With its strategic initiatives and increasing regional participation, the corporation is positioning itself as a leading force in reshaping Africa’s investment landscape.
AFC Targets $20bn From African Pension Funds is first published on The Whistler Newspaper
