African deposit and investment funds have endorsed an African Development Bank initiative aimed at reforming the continent’s financial architecture and reducing dependence on external financing.
The endorsement was made during the African Forum of Deposit Funds held alongside the AfDB Annual Meetings in Brazzaville, where participants examined the role of institutional investors in the New African Financial Architecture for Development (NAFAD).
Managing Director of the Niger Deposit and Investment Fund, Assoumane Mourjatou, said the initiative would strengthen Africa’s development financing mechanisms by improving domestic resource mobilisation and encouraging greater participation of institutional investors.
According to her, NAFAD would help African countries access larger pools of capital to tackle development challenges while reducing reliance on foreign funding sources.
The initiative was adopted through the Abidjan Consensus in April and later endorsed by African leaders at the African Union Summit in Addis Ababa.
NAFAD is designed to mobilise Africa’s domestic financial resources for transformative development projects, strengthen African financial institutions and reduce fragmentation within the continent’s financial ecosystem.
The AfDB estimates Africa’s annual development financing gap at more than $400 billion, despite the continent holding about $4 trillion in managed savings through pension funds, sovereign wealth funds, insurance firms and other domestic financial institutions.
Deputy Managing Director of Gabon’s Deposit and Consignment Fund, Angélique Bouka, said deposit funds play a critical role in converting idle savings into productive investments that support national development priorities.
Participants also highlighted the importance of mobilising African diaspora savings and strengthening legal and regulatory frameworks to ensure deposit funds operate effectively, independently and with minimal political interference.
The forum brought together representatives from several African countries to exchange ideas, share best practices and explore ways of expanding Africa’s capacity to finance its own development agenda.
