Africa’s poorest and most fragile economies are set to receive increased financial support following the launch of a new investment initiative by the African Development Bank (AfDB) Group and the World Economic Forum (WEF).
The initiative, known as the Humanitarian and Resilience Investing (HRI) Roadmap for Africa, aims to attract private-sector investment into countries that have traditionally struggled to secure adequate funding for development projects. The programme is expected to help bridge financing gaps and create opportunities for sustainable economic growth across underserved regions.
The roadmap introduces a coordinated and country-driven strategy designed to mobilise both commercial and development capital for frontier markets and transition economies. These are countries where investment opportunities exist but where investors often face challenges such as weak infrastructure, political instability, and limited access to financial services.
Africa currently faces a major financing challenge, with an estimated annual development funding gap of about $400 billion. Despite being home to around 17 per cent of the world’s population, the continent attracts only a small share of global investment. Africa receives approximately 3.5 per cent of foreign direct investment worldwide and less than 2 per cent of global venture capital funding.
The situation has become more urgent due to changing global economic conditions and a decline in official development assistance from international partners. To address these challenges, pilot programmes under the HRI Roadmap have already started in Liberia, Somalia, Mozambique, and Djibouti.
Speaking during the launch, African Development Bank Group Senior Vice President Marie-Laure Akin-Olugbade, representing the Bank’s President, Dr. Sidi Ould Tah, said Africa must move away from relying heavily on foreign aid and embrace investment-led development.
According to her, the roadmap provides a clear framework for governments, development institutions, and private investors to work together. She explained that public and development finance should serve as a catalyst that encourages private investment rather than replacing it.
World Economic Forum Managing Director Sheba Crocker also stressed the importance of the initiative. She noted that vulnerable communities need more than emergency assistance and should have access to investments that help businesses grow, create jobs, and build stronger local economies.
During a panel discussion held after the launch, government officials and development experts discussed strategies for attracting investment to fragile economies.
Somalia’s Minister of Finance, Bihi Iman Egeh, said entrepreneurship is strong in his country but many businesses face obstacles due to limited banking connections and investment risks. Other panellists highlighted the need for improved digital infrastructure, financial inclusion, and regulatory reforms to unlock growth opportunities.
The roadmap places strong emphasis on climate resilience and gender inclusion. It also aligns with several major AfDB development strategies, including the Affirmative Finance Action for Women in Africa (AFAWA) programme. Through AFAWA, the Bank has already provided $1.33 billion in financing to women-led businesses across 45 African countries.
Stakeholders believe the new roadmap could play a key role in attracting investment, creating jobs, supporting entrepreneurs, and driving long-term economic development in some of Africa’s most vulnerable nations.
