Fix Procurement, Digitise Systems To Save $299bn Yearly, AfDB Urges African Leaders

The African Development Bank (AfDB) has told African leaders that improving how public funds are spent could save the continent about $299 billion each year.

The warning and advice are contained in the bank’s 2026 African Economic Outlook, released during the AfDB’s annual meetings in Brazzaville.

The report said that poor spending decisions and weak systems mean more than 40 per cent of public investment across Africa is lost to inefficiencies. That leakage, the AfDB argues, makes it harder for countries to fund development and to sustain stronger economic growth.

“Fixing procurement and digitising fiscal systems are practical steps governments can take to stop money slipping away,” the report stated.

The bank urges leaders to strengthen public financial management so that public resources are used productively and reach intended projects and services.

Key steps recommended by the AfDB include better project selection, tighter procurement controls, improved fiscal planning and stronger oversight. The report also calls for greater transparency, stronger accountability and more public participation in budget implementation so citizens can see how funds are spent.

Digitising payrolls, procurement and budget systems is a priority, the AfDB said, because digital systems reduce opportunities for fraud and error and make it easier to track spending.

The bank adds that clearer procurement rules and tougher controls would cut waste and speed up the delivery of public projects.

The report presents efficiency reforms as both a governance priority and a financing strategy.

By improving how existing resources are spent, countries can ease financing constraints without immediately raising taxes or borrowing more. In other words, Africa could achieve higher growth from the resources it already has if spending becomes more efficient.

The AfDB also recommended gradual fiscal reforms to boost domestic revenue and build trust in tax systems.

Measures suggested include expanding tax bases, improving tax administration, and strengthening customs and audit systems. These steps, the bank noted, will help governments raise stable revenues needed for development.

To attract long-term investment, the bank encourages governments to deepen capital markets and to strengthen public-private partnership frameworks. Better-managed public funds and clearer rules for partnerships, it says, would make Africa more attractive to investors.

The AfDB insisted that closing gaps in public spending and modernising financial systems are crucial if African countries are to make the most of scarce resources and accelerate development.

The bank said that leaders must act urgently to plug leakages and ensure public money delivers real benefits for citizens.