The African Development Bank is advancing a new financing strategy aimed at reducing Africa’s dependence on external development assistance by mobilizing more domestic capital. The shift comes amid declining foreign aid, rising debt pressures, and growing development needs. The continent holds more than $1 trillion in pension assets, much of which is invested outside Africa. Under President Sidi Ould Tah, the bank is implementing the New African Financial Architecture for Development to strengthen regional financial institutions and improve capital mobilization. Initiatives include a $70 million credit line for the ECOWAS Bank for Investment and Development, increased investment in the African Trade Insurance Agency, and support for Central African development institutions. The AfDB also plans to introduce hybrid capital financing and a securitization platform to expand lending capacity, attract institutional investors, and make development projects more financially sustainable.
