Africa Urged to Strengthen Institutions to Unlock Global Finance

The African Development Bank and the Korea Institute for International Economic Policy recently convened to discuss the African Economic Outlook 2026, which forecasts the continent's real GDP growth at 4.2% for 2026. Experts emphasized that while Africa has weathered repeated global shocks, the next hurdle is translating that stability into job creation and poverty reduction. KIEP Vice President Sungbae An noted that the continent's trajectory remains a critical factor for global supply chain resilience.

To move forward, analysts suggest Africa must transition from a passive recipient of capital to a strategic investment partner. This shift hinges on the ability of domestic agencies to design 'investable' projects. Veda Vaidyanathan of India’s Centre for Social and Economic Progress argued that the availability of global capital is secondary to a country's capacity to organize it effectively. Similarly, Francis Anguyo of the African Development Bank highlighted that institutional investors require clear revenue models, credible sponsors, and transparent governance to mitigate risk.

Ultimately, the seminar concluded that financial success depends on trust. Anthony Simpasa, Director of the Bank’s Macroeconomic Policy, Forecasting and Research Department, stated that investor confidence is inextricably linked to the quality of local institutions and implementation capacity. As the global environment grows more uncertain, fostering deeper ties between African and Asian markets has become a priority for sustainable development.