AfDB President Warns Africa Faces US$100 Billion A...

AfDB President Warns Africa Faces US$100 Billion Annual Investment Shortfall

Oscar J. Jeke – ZimNow Reporter

Africa is losing more than US$100 billion in foreign direct investment annually due to weak rule of law, high debt, and exploitative “vulture funds,” African Development Bank (AfDB) President Dr. Akinwumi Adesina has warned.

Addressing the Kenya Law Society Annual Conference in Diani, Adesina said fragile legal systems discourage investors while allowing predatory creditors to sue distressed African governments for massive repayments.

“Africa cannot attract investment when justice is weak and when vulture funds prey on our nations. Justice is not a byproduct of development; it is the foundation of development,” he told delegates.

The AfDB chief called for reforms to strengthen judicial independence, improve transparency in natural resource laws, and establish sovereign wealth funds to safeguard long-term prosperity.

He also urged African countries to develop local arbitration systems to settle disputes fairly and reduce reliance on foreign courts.

Adesina highlighted success stories in Rwanda and Côte d’Ivoire, where AfDB-backed reforms to commercial courts cut dispute resolution times and unlocked over US$1 billion in new investment.

He also cited Seychelles, which reduced its debt-to-GDP ratio from above 100 percent to under 55 percent after passing laws requiring parliamentary approval for borrowing.

His remarks come as African governments face mounting fiscal pressures, with several states battling debt restructuring amid volatile global capital markets.