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Mobilizing Africa’s resources for development
Despite sluggish global economic growth prospects, Africa is demonstrating resilience in the face of a series of major global shocks, from the lingering effects of the COVID-19 pandemic to disruptions caused by geopolitical conflict and trade policies. Economic growth in sub- Saharan Africa is projected to remain steady at 4.1% in 2025 with a modest increase in 2026.1 At the same time, the continent’s population continues to expand rapidly and will double by 2050. This demographic momentum and economic resilience present both significant opportunities and formidable challenges, foremost among them the need to scale up investment to create jobs at scale and expand social and economic opportunities. Among the obstacles, none is arguably more important than financing for development. We estimate that sub-Saharan Africa needs at least an additional $245 billion per year in financing. With national savings subdued and external financing dwindling, it is now imperative to explore innovative ways to unlock domestic resources. The natural resource endowment of the region, valued at over $6 trillion in 2020,2 offers the largest untapped potential and the most promising pathway to mobilize domestic financing at scale.
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