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Africa Strengthens Foundations to Lead Its Own Financing as Domestic Pools Surpass External Flows, Africa Finance Corporation (AFC) Report Shows

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Africa

AFC’s State of Africa’s Infrastructure Report 2026 argues that Africa’s next development breakthrough will come from deploying domestic capital into infrastructure, industry and integrated systems at scale

NAIROBI, Kenya, April 23, 2026/APO Group/ —

  • Africa’s development challenge is increasingly shifting from capital raising to productive capital deployment in infrastructure and industry, according to AFC’s State of Africa’s Infrastructure Report 2026
  • Non-bank domestic capital pools now exceed US$2 trillion, surpassing ~US$1.7 trillion in cumulative external flows to Africa (2014–2024)
  • Official development assistance fell from US$83.8 billion in 2020 to US$73.5 billion in 2023, with further declines expected for 2025–2026
  • Sovereign issuance dropped from over US$29 billion in 2018 to US$4–6 billion annually in 2022–2023, with only limited recovery through 2024–2025
  • Domestic pension and insurance assets crossed US$1 trillion for first time
  • Central bank reserves at US$530 billion in 2025, from US$480 billion in 2024
  • Gold now represents ~17% of reserves, up from less than 10% in 2022–2023
  • Africa’s biggest infrastructure opportunity lies in integrated systems—connecting energy, transport, industry and digital layers into demand‑anchored ecosystems that improve bankability and enable scale

 

Africa’s domestic capital base has reached a scale that now exceeds external financing flows over the past decade, marking a turning point in how the continent funds its growth and industrialisation, according to the Africa Finance Corporation’s (www.AfricaFC.orgState of Africa’s Infrastructure Report 2026.

SAIR 2026 finds that cumulative external flows to Africa totalled approximately US$1.7 trillion between 2014 and 2024, while Africa’s non-bank domestic capital pools exceed US$2 trillion. The implication is clear: African capital now has a stronger foundation to play a significantly larger role in financing the continent’s development.

Launched at The Africa We Build Summit in Nairobi, co-hosted by AFC and H.E. Dr William Samoei Ruto, President of the Republic of Kenya, the SAIR 2026 report argues that the overarching development priority has shifted from capital mobilisation to intermediation—converting savings into infrastructure, industry, and productive investment at scale.

“The constraint is no longer capital—it is intermediation,” Samaila Zubairu, President & CEO of AFC, said at the The Africa We Build Summit today. “We have the savings, but not yet the systems to channel them into infrastructure and industry at scale. Closing that gap is now Africa’s most important economic task. The next phase of Africa’s infrastructure story must move beyond standalone assets towards integrated systems.”

Local Capital on the Rise

Driving the increase in domestic institutional capital, pension and insurance assets have surpassed US$1 trillion for the first time. Public development bank assets stand at US$276 billion, and sovereign wealth funds at US$164 billion, while central bank reserves increased from US$480 billion in 2024 to US$530 billion in 2025.

This increase has been supported in part by stronger commodity dynamics and rising gold accumulation. Gold now represents approximately 17% of Africa’s total reserves, up from less than 10% in 2022–2023, while physical holdings rose from 663 tonnes in 2022 to an estimated 738 tonnes in 2025.

Despite its increased scale, domestic capital remains largely concentrated in short-term, low-risk assets—particularly government securities—reflecting limited investable pipelines, regulatory incentives favouring liquidity, and insufficient risk-sharing mechanisms. The result is a persistent gap between available savings and long-term productive investment.

Africa is not capital-poor—it is capital-rich but system-poor

External Financing Recedes

At the same time, external financing is becoming less reliable, reinforcing the case for a domestic capital-led development model. Official development assistance to Africa fell from US$83.8 billion in 2020 to US$73.5 billion in 2023 and is projected to decline further. The OECD estimates global official development assistance fell 23.1% in 2025, the largest annual contraction on record.

Sovereign issuance remains well below pre-2019 levels, falling from over US$29 billion in 2018 to US$4–6 billion annually in 2022–2023, while foreign direct investment has remained concentrated at roughly US$45–55 billion annually, insufficient to meet the continent’s broad investment needs.

As a result, external capital is increasingly complementary, rather than foundational , to Africa’s development model.

From Assets to Integrated Systems

The biggest potential for capital deployment lies in demand-driven integrated infrastructure, according to SAIR 2026. In transport and logistics, corridors deliver the greatest value when designed as production ecosystems rather than transit routes—linking ports, rail, roads, logistics, storage, and trade facilitation to industrial demand. A continental backbone is already taking shape; the opportunity now is to improve performance, execution, and coordination.

This is particularly evident in East Africa. Mombasa—one of Africa’s busiest ports—handles more than 45 million tonnes of cargo annually, while rail investments are extending connectivity inland, including along the Naivasha–Kisumu corridor. In aviation, SAIR 2026 identifies air transport as the most immediate and scalable lever for integration. Across Kenya, Rwanda, and Ethiopia, aviation contributes a combined US$5.5 billion to GDP and supports around one million jobs, demonstrating how connectivity can rapidly translate into trade and growth.

Similarly, in energy, the priority is no longer incremental capacity additions alone, but integrated systems combining generation, transmission, storage, fuels, and industrial demand. Cross-border infrastructure such as the Ethiopia–Kenya interconnector shows how regional systems can move power to where it is needed most and improve system-wide efficiency.

Resilience Gap

Recent shocks—from Russia–Ukraine to the 2026 Gulf crisis—underscore the cost of fragmented systems and the urgency of building domestic processing, storage, and supply-chain resilience. The continent continues to import over 70% of its refined fuel and faces an estimated US$230 billion annual import bill across essential goods—including fuel, food, plastics, steel, and fertiliser, according to SAIR 2026.

In digital infrastructure, while connectivity has expanded rapidly, the next opportunity lies in building the “missing middle”—terrestrial backbone networks, metro fibre, data centres, Internet Exchange Points, and enterprise platforms that convert connectivity into productivity, services exports, and job creation.

Across all sectors and African countries, the report’s conclusion is consistent: the development challenge is increasingly institutional and systemic. Capital exists, and infrastructure assets are expanding. The next breakthrough will come from linking finance, energy, transport, industry, and digital systems into coherent ecosystems capable of supporting growth at scale.

“Africa is not capital-poor—it is capital-rich but system-poor,” said Zubairu. “The priority must be to build the institutions, instruments, and project pipelines required to deploy that capital into infrastructure and industry at scale.”

Distributed by APO Group on behalf of Africa Finance Corporation (AFC).

Energy

Gwede Mantashe Joins African Energy Week (AEW) 2026 as South Africa’s Petroleum Reforms Open the Orange Basin to Drilling

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African Energy Chamber

A new petroleum law and the prospect of fresh Orange Basin drilling is resetting South Africa’s upstream, and Minister Mantashe is taking the AEW host nation’s case to the global market

CAPE TOWN, South Africa, June 8, 2026/APO Group/ –Gwede Mantashe, Minister of Mineral and Petroleum Resources of the Republic of South Africa, has been confirmed as a featured speaker at the upcoming African Energy Week (AEW) 2026 Conference and Exhibition, where he is expected to lay out the reform agenda reshaping the country’s upstream oil and gas sector and its drive to convert long-stranded offshore gas into production.

 

South Africa is pursuing one of the most significant upstream overhauls in its history, anchored by a new law that gives oil and gas their own regulatory regime for the first time. The reforms position the host nation as both a destination for exploration capital and a future producer along an Atlantic margin that has drawn the world’s largest oil companies to the region.

At the center of the shift is the Upstream Petroleum Resources Development Act (UPRDA), which President Cyril Ramaphosa signed into law in October 2024. The Act separates petroleum from the mining statute that has long regulated both sectors. It also creates a single petroleum right covering exploration and production along with a 20% carried interest for the state. The UPRDA awaits a presidential proclamation to take effect, and implementing regulations that went through a further round of industry comment in early 2026 are now being finalized.

A clear petroleum framework and a credible state partner are what international capital needs to commit to the Orange Basin

Mantashe has emerged as the most forceful advocate for accelerating the sector. He has long-argued that South Africa must shift from importing refined products to producing its own, warning that dependence on foreign supply leaves the economy exposed to global price shocks. This shift becomes increasingly more importance in the current global climate, where supply security has become a major challenge – particularly for import-reliance economies such as South Africa. As such, Mantashe has repeatedly pressed for faster licensing and fewer legal delays to exploration. AEW 2026 is a key platform to bring this discussion to a global audience.

“South Africa has the geology for exploration. Now it is building the regulatory certainty it needs to turn discoveries into bankable projects,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “A clear petroleum framework and a credible state partner are what international capital needs to commit to the Orange Basin.”

Offshore, TotalEnergies – operator of Block 3B/4B in the Orange Basin – is preparing to begin drilling in South African waters in 2026 pending final regulatory approvals. The acreage sits on trend with the Venus discovery in neighboring Namibia, where TotalEnergies is developing the basin’s first oil project.

Onshore, momentum is building in Mpumalanga, where gas developer Kinetiko Energy’s Amersfoort project has logged sustained high-flow results and is advancing plans for an LNG pilot plant. Mantashe has also signaled that government is moving to lift the long-standing moratorium on shale gas development, with the Petroleum Agency of South Africa (PASA) estimating recoverable Karoo reserves at 209 tcf.

Mantashe is also expected to report on successes of the South African National Petroleum Company (SANPC), the state entity formed in May 2025 through the merger of PetroSA, iGas and the Strategic Fuel Fund. Positioned as the country’s petroleum champion, SANPC is intended to anchor state participation across the value chain as South Africa works toward 6 GW of gas-fired power by 2030.

As AEW 2026 prepares to convene policymakers, investors and operators at the Cape Town International Convention Centre from October 12-16, Mantashe’s address carries added weight as the host nation’s signal to the market. His message is expected to be direct: South Africa is open for upstream investment and ready to move from potential to production.

Distributed by APO Group on behalf of African Energy Chamber.

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Business

Mining Review Africa expands coverage to include global mining news

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vukagroup

The expanded editorial scope aligns with Vuka Group’s commitment to delivering timely, relevant and insightful content that supports informed decision-making across the mining value chain

CAPE TOWN, South Africa, June 8, 2026/APO Group/ –Vuka Group’s Mining Review Africa (https://WeAreVUKA.com), a leading source of mining industry news and insights, is expanding its editorial coverage to include major mining developments from around the world.

 

While Mining Review Africa remains firmly committed to reporting on the opportunities, challenges and successes shaping Africa’s mining sector, readers will now also benefit from coverage of international projects, investments, technologies, commodity markets and policy developments influencing the global mining industry.

The move reflects the increasingly interconnected nature of the mining sector, where developments in one region can have significant implications for investment decisions, supply chains, commodity markets, and mining operations worldwide.

Expanding our coverage enables us to deliver a more comprehensive view of the mining industry while maintaining our strong focus on Africa

“As the mining industry continues to evolve on a global scale, our readers are seeking greater context around international developments that impact Africa and the wider resources sector,” said Mining Review Africa Editor-in-Chief, Gerard Peter.

“Expanding our coverage enables us to deliver a more comprehensive view of the mining industry while maintaining our strong focus on Africa.”

Readers can expect enhanced reporting on major mining projects, mergers and acquisitions, sustainability initiatives, technological innovation, critical minerals, energy transition developments and regulatory changes from key mining jurisdictions worldwide.

The expanded editorial scope aligns with Vuka Group’s commitment to delivering timely, relevant and insightful content that supports informed decision-making across the mining value chain.

Mining Review Africa has established itself as a trusted voice within the African mining industry, providing news, analysis and thought leadership for mining professionals, investors, suppliers and policymakers. By broadening its coverage, the publication aims to give readers a deeper understanding of the global forces shaping the future of mining, while continuing to place African mining stories at the centre of its reporting.

For readers, this means access to a wider range of industry intelligence, bringing together African mining news and key international developments on a single trusted platform.

Distributed by APO Group on behalf of VUKA Group.

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13,000 Hectare Wild Coast Conservation Property Comes to the Market in the Eastern Cape

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Coast Conservation

Tyityaba Nature Reserve, a proclaimed reserve covering roughly 13,000 hectares on the Wild Coast, has been listed at an indicative R145 million (about USD 8.9 million)

EAST LONDON, South Africa, June 8, 2026/APO Group/ –One of the largest privately held conservation properties in the Eastern Cape has been put up for sale. Tyityaba Nature Reserve, a proclaimed reserve covering roughly 13,000 hectares on the Wild Coast, has been listed at an indicative R145 million (about USD 8.9 million), according to the selling agent, Bass Property Group (www.BassPropertyGroup.co.za).

The property sits about 18 kilometres inland from Kei Mouth. Its status as a gazetted proclaimed reserve, a designation under South African law, ties the land to long-term conservation management and places it within a category of property that has drawn growing interest from investors looking for protected land. Listings of this scale are uncommon, and proclaimed reserves seldom change hands, making the sale a notable event in the regional market.

Scale and setting

Size is the reserve’s most distinguishing feature. It holds about 26 kilometres of frontage along the Kei River and a perimeter of roughly 81 kilometres, taking in rolling bushveld, riverine thicket and the open vistas typical of the Wild Coast, a region known for its biodiversity and its remoteness. The varied terrain supports a mix of habitats, from valley grassland to dense thicket, that sustains the reserve’s wildlife through the seasons.

That remoteness is relative. King Phalo Airport in East London, which has direct flights from Johannesburg and Cape Town, is about an hour away by road, placing the reserve within comfortable reach of major centres while preserving the seclusion that defines the Wild Coast.

Wildlife

The reserve carries buffalo, giraffe, leopard, zebra, blue wildebeest, eland and impala, along with a wide range of birdlife. Populations of spiral-horned antelope, such as nyala, kudu and bushbuck, are prolific and well established. Tyityaba has a long record of regulated, quota-based wildlife use carried out within South Africa’s conservation framework, and its established game populations would allow a new owner to continue managed conservation operations without a lengthy restocking period.

Twenty-six kilometres of river frontage and 13,000 hectares of established habitat take generations to form and cannot be recreated

Infrastructure

The main lodge has eight en-suite bedrooms and shared entertainment areas. The property also includes an abattoir and workshop, with several other farm dwellings spread across the holding that could house staff or be developed to accommodate guests. An airstrip on site would need upgrading before it could be used, though it raises the possibility of fly-in access alongside the road route from East London. Together, the existing buildings give a buyer a working base from which to operate or further develop the reserve.

How it can be bought

The land is made up of 26 portions across five titles. It can be bought as a single holding or, the agent says, divided among several owners as a development. That structure is part of what they expect will determine who comes forward.

“Tyityaba is a large landholding of a kind that rarely comes to the open market in South Africa,” said Hanlie Bassingthwaighte, a principal of Bass Property Group. “Its main strength is flexibility. It can work as a single-owner reserve or as the basis for a development shared among several owners.”

Price

The reserve is listed at an indicative R145 million (about USD 8.9 million). The agent attributes the figure to the property’s size, biodiversity and the range of ownership options it allows.

“Twenty-six kilometres of river frontage and 13,000 hectares of established habitat take generations to form and cannot be recreated,” said Joshua Bassingthwaighte, also a principal of the firm.

Distributed by APO Group on behalf of Bass Property Group.

 

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