AfDB Urges Private Capital to Drive Africa’s Infrastructure Development

The director general for Southern Africa at the African Development Bank (AfDB), Kennedy Mbekeani, has called for stronger mobilisation of private capital to finance critical infrastructure required to unlock the full potential of Africa’s trade integration.

Mbekeani made the call while speaking at the Africa Trade Conference in South Africa, where he urged governments and financial institutions to deepen collaboration with the private sector in order to fund infrastructure projects needed to drive economic growth across the continent.

According to him, the mobilisation of private capital remains crucial as many African governments are constrained by limited fiscal space and overstretched balance sheets. “The mobilisation of capital, particularly private capital, is something that we need to work on,” he said.

He noted that while public finances remain under pressure in many African countries, governments must rethink their role in infrastructure development by creating an enabling environment for private investors rather than insisting on owning and operating projects.

Mbekeani said several sectors already demonstrate how private participation can work effectively when governments focus on regulation and policy support. “They have done it with buses where private operators are running the services while government regulates. They are doing the same in some cases with energy, universities and other sectors,” he said.

He stressed that similar models can be adopted in the development of infrastructure required to support the continent’s trade ambitions under the African Continental Free Trade Area (AfCFTA).

The AfDB director general observed that although Africa represents the world’s largest free trade area by number of participating countries, the continent still faces significant infrastructure gaps that limit its ability to fully harness the benefits of the agreement.

He explained that infrastructure is essential not only to facilitate trade but also to boost production and consumption across African markets. According to him, Africa already has a vast market but has yet to fully develop the productive capacity needed to meet demand within the continent. “We have the market but we are not producing and we are not consuming enough,” he said.

Mbekeani also urged financial institutions and investors to engage governments more actively in order to unlock development financing for large scale projects across the continent. “The money that you have, the money that you are sitting on, is the money that is needed for development,” he said, encouraging stronger collaboration between governments and the private sector.

He emphasised that successful examples of private sector participation in other markets should be presented to policymakers to build confidence and encourage wider adoption of such models. Mbekeani further noted that stronger infrastructure development would help Africa reduce its vulnerability to global shocks by strengthening trade within the continent.

He added that improving connectivity and market integration would ensure that African economies can rely more on internal trade flows even during periods of global disruption.

The AfDB official also commended African institutions for taking the lead in discussions around the continent’s economic future, noting that platforms such as the Africa Trade Conference demonstrate growing regional ownership of development conversations.

He urged stakeholders across the continent to support such initiatives and work collectively toward building the infrastructure required to accelerate regional integration and economic growth in Africa.