The African Development Bank (AFDB) has stated that African countries could save up to $299 billion annually through improved public investment efficiency while unlocking trillions of dollars in development financing through stronger reforms and enhanced domestic resource mobilisation.
The disclosure was contained in the Bank’s 2026 African Economic Outlook report released during its Annual Meetings in Brazzaville.
Published under the theme, “Mobilizing Africa’s Development Financing at Scale in a Fragmented World,” the report highlighted the continent’s growing fiscal pressures alongside major untapped opportunities capable of accelerating economic transformation and infrastructure development.
According to the report, African countries could generate an estimated $469 billion in additional annual revenues through stronger tax and non-tax mobilisation reforms.
The Bank also noted that every additional dollar invested publicly could attract about $1.40 in private investment through stronger public-private partnerships.
It further revealed that institutional investors globally currently manage nearly $4 trillion in assets, yet less than 2.7 per cent of those funds are invested in Africa’s infrastructure and productive sectors.
“Among the key opportunities identified are an estimated $469 billion in additional annual revenues from stronger tax and non-tax mobilisation, alongside roughly $299 billion in potential savings from improved public investment efficiency,” the report stated.
The AfDB described the low level of institutional investment in Africa as a major missed opportunity for the continent’s long-term economic development.
Despite ongoing geopolitical tensions, global supply chain disruptions, and tighter financial conditions, the Bank projected that Africa would remain one of the world’s fastest-growing regions over the medium term.
East Africa is expected to maintain its position as the continent’s fastest-growing region, although growth is projected to slow to 5.9 per cent in 2026 from 6.6 per cent in 2025 due to rising energy and import costs linked to tensions in the Middle East.
West Africa’s economy is forecast to grow by 4.7 per cent in 2026, supported by agricultural expansion and infrastructure investments.
Central Africa is projected to record modest growth improvement to 3.8 per cent in 2026 from 3.6 per cent in 2025, largely driven by higher oil prices.
Southern Africa, however, is expected to remain the slowest-growing region, with growth slowing to 2.1 per cent due to weaker mining output, lower agricultural productivity, and increasing energy costs.
The report also highlighted Africa’s widening development financing gap, estimating that the continent currently faces an annual shortfall of more than $1.3 trillion required to achieve the United Nations Sustainable Development Goals.
According to the Bank, the financing gap is being worsened by weak domestic revenue mobilisation, rising debt pressures, illicit financial flows, shallow financial systems, and tighter global financing conditions.
The AfDB maintained that Africa has the financial potential to significantly reduce the financing gap if governments strengthen reforms and improve economic institutions.
The Bank estimated that the continent could unlock up to $1.43 trillion annually through stronger tax systems, improved public spending efficiency, deeper capital markets, reduced corruption, and expanded public-private partnerships.
In November, the AfDB approved a $500 million loan to the Federal Government of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme.
As of October 31, 2025, the AfDB’s active portfolio in Nigeria consisted of 52 projects valued at $5.1 billion.
