The African Development Bank has revealed that African countries could save up to $299 billion every year if governments improve the way public funds and investment projects are managed.
The Bank made this known in its 2026 African Economic Outlook Report, released during its annual meetings in Brazzaville. The report focused on how African nations can raise more money for development despite global economic challenges and rising financial pressures.
According to the report, Africa still has huge untapped opportunities that could help the continent finance infrastructure, create jobs, and grow its economies faster.
The AfDB explained that stronger tax systems and better revenue collection could help African countries generate an extra $469 billion annually. The report added that governments can also attract more private investors if public projects are managed properly.
The Bank stated that every additional dollar invested by governments could attract about $1.40 in private sector investment through stronger public-private partnerships.
Another major issue raised in the report was the low level of institutional investment flowing into Africa. Global institutional investors such as pension funds, insurance companies, and sovereign wealth funds currently manage close to $4 trillion in assets, but less than 2.7 percent of that money is invested in Africa’s infrastructure and productive sectors.
The AfDB described this as a major missed opportunity for the continent’s long-term economic development.
Despite global uncertainties such as geopolitical tensions, rising energy prices, supply chain disruptions, and tighter financial conditions, the Bank said Africa is expected to remain one of the fastest-growing regions in the world over the next few years.
The report projected that East Africa would continue to lead the continent in economic growth, although growth is expected to slow slightly to 5.9 percent in 2026 from 6.6 percent in 2025 because of higher energy and import costs linked to tensions in the Middle East.
In West Africa, growth is expected to reach 4.7 percent in 2026, supported by increased agricultural production and infrastructure development projects.
Meanwhile, Central Africa is projected to record moderate growth of 3.8 percent, largely due to stronger oil prices.
However, Southern Africa is expected to remain the continent’s slowest-growing region, with economic growth forecast at 2.1 percent because of weaker mining activities, lower agricultural productivity, and increasing energy costs.
The report also warned about Africa’s widening development financing gap. According to the AfDB, the continent currently faces an annual funding shortfall of more than $1.3 trillion needed to achieve the United Nations Sustainable Development Goals (SDGs).
The Bank noted that the financing gap is being worsened by weak revenue generation, rising debt burdens, corruption, illicit financial flows, and limited access to global financing.
However, the AfDB believes Africa can significantly reduce this gap if governments implement stronger reforms, improve transparency, deepen capital markets, and strengthen economic institutions.
The Bank estimated that Africa could unlock up to $1.43 trillion annually through improved tax collection, better management of public spending, stronger partnerships with private investors, and reduced corruption.
The AfDB also continues to support African economies directly. In November, the Bank approved a $500 million loan to the Federal Government of Nigeria to support economic governance and energy transition reforms.
As of October 31, 2025, the AfDB’s active projects in Nigeria were valued at about $5.1 billion, covering 52 different projects across key sectors of the economy.
