AFC Report Unveils $4 Trillion Capital Pool to Power Africa’s Infrastructure

“The tools exist. The capital is available. What’s needed now is coordinated action to unlock it,” said Samaila Zubairu, President & CEO of AFC.

The Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, has released its 2025 edition of the State of Africa’s Infrastructure (SAI) Report, delivering what is arguably the most comprehensive assessment of Africa’s investable capital landscape to date. The landmark study reveals that Africa holds over $4 trillion in domestic capital, spanning banking assets, institutional funds, and central bank reserves—resources that, if strategically deployed, could dramatically transform the continent’s infrastructure, energy systems, and industrial base.

The full report is available for download here: State of Africa’s Infrastructure 2025

“The tools exist. The capital is available. What’s needed now is coordinated action to unlock it,” said Samaila Zubairu, President & CEO of AFC.

$4 Trillion in Untapped Capital: A Missed Opportunity

The report outlines a conservative estimate of $1.1 trillion in long-term institutional capital, sourced from pensions, insurance companies, sovereign wealth funds, and public development banks. Additionally, it identifies $2.5 trillion in commercial banking assets and $470 billion in central bank reserves, signalling a financial depth often overlooked in discussions on African development finance.

Despite the substantial volume of these funds, the report criticises the current allocation pattern: most of the capital is parked in low-risk, short-term instruments, offering minimal impact on long-term development outcomes. The SAI Report urges bold reforms, including:

• Targeted policy interventions

• Use of risk-mitigation tools

• Creation of pooled funds and dedicated investment platforms

• Financial innovation to crowd in both public and private capital

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Reframing Africa’s Energy Challenge

AFC’s report advocates for a paradigm shift in Africa’s energy narrative—from fragmented, small-scale access initiatives to large-scale, interconnected power systems that fuel industrialisation, digital sovereignty, and climate resilience.

In stark contrast to India, which added over 18 GW of renewable capacity in 2024, Africa managed only 6.5 GW of new grid-connected power from all sources in the same period. This disparity is reflected in per capita electricity generation, which has stagnated in Africa while more than doubling in India since 2008.

The report calls for:

• Regional power grid integration

• Cross-border interconnectors

• Private sector investment in electricity transmission

Countries such as Angola, DRC, Tanzania, and Mauritania are spotlighted as strategic interconnector markets, with the potential to link surplus generation capacity with areas facing chronic power deficits. Notably, Africa remains the only developing region without an independent transmission project—a gap the AFC says must be urgently addressed.

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Rail Renaissance: Africa’s New Transport Cycle

In a more optimistic turn, the SAI Report highlights the emergence of a new rail infrastructure cycle across Africa. Years of under-investment and neglect are being reversed by a surge in rail projects, spanning over 7,000 km of under-construction and planned railway lines across East, West, and Southern Africa.

To support this growth, AFC has launched the first-ever Digital Map of African Railways: 🔗 View Map

This dynamic platform offers real-time insights into Africa’s rail corridors and aims to:

• Enhance project visibility

• Attract investment interest

• Improve coordination across key trade and transport routes

This rail renaissance could prove transformative for intra-African trade, especially under the African Continental Free Trade Area (AfCFTA).

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Strategic Industries: Unlocking Value Chains in Steel, Fertilizers, and Oil

AFC identifies steel, fertilizers, and oil refining as three of Africa’s most critical but import-heavy industrial inputs, accounting for over $300 billion in annual imports.

• Steel: African per capita consumption sits at a meagre 24 kg, compared to the global average of 219 kg.

• Fertilizers: Africa uses just 23 kg per hectare, far below the 140 kg global average.

The ore-to-steel value chain, particularly in West Africa, holds significant potential. Realising it will require cross-border logistics, energy infrastructure, and processing capacity to convert raw inputs into high-value outputs within Africa.

The report calls for:

• Coordinated investments in logistics, energy, and transport

• Establishment of regional processing hubs

• Greater emphasis on intra-African industrial linkages

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A Blueprint for Action

The 2025 SAI Report is more than a snapshot—it is a strategic blueprint for leveraging Africa’s own capital to solve African infrastructure challenges. Key takeaways include:

• Harnessing domestic financial muscle before over-relying on foreign aid

• Using risk-mitigation frameworks to attract co-investment

• Prioritising bankable projects in energy, transport, and industry

• Embracing regional integration for power, logistics, and markets

AFC’s vision is clear: Africa has the capital, tools, and opportunities—now it needs coordinated action and political will to turn potential into progress.

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