AfDB and WEF Launch Investment Roadmap to Transform Africa’s Fragile Economies

The launch of the roadmap comes at a time when Africa faces one of the world's largest development financing challenges.

The African Development Bank Group (AfDB) and the World Economic Forum (WEF) have launched a groundbreaking investment framework designed to attract private capital into some of Africa's most underserved and fragile economies. The new Humanitarian and Resilience Investing (HRI) Roadmap for Africa seeks to bridge persistent financing gaps by promoting investment-led development in frontier markets and transition states where access to capital remains severely limited.

The initiative represents a significant shift in development thinking, moving away from traditional aid-focused approaches toward strategies that prioritize private sector investment, economic resilience and sustainable growth. By creating a coordinated, country-driven framework for investment, the roadmap aims to unlock opportunities in regions that have historically struggled to attract international finance.

Pilot programmes are already underway in Liberia, Somalia, Mozambique and Djibouti, offering an early test of how the model can help transform fragile economies into more attractive destinations for investment and entrepreneurship.

Addressing Africa's Massive Financing Gap

The launch of the roadmap comes at a time when Africa faces one of the world's largest development financing challenges.

Despite being home to approximately 17 percent of the global population, the continent receives only 3.5 percent of global foreign direct investment (FDI) and less than 2 percent of worldwide venture capital funding.

This imbalance has contributed to a substantial annual financing shortfall estimated at around US$400 billion, limiting the ability of many countries to invest in infrastructure, job creation, climate resilience, healthcare, education and economic diversification.

Development experts argue that closing this gap will require significantly greater participation from private investors alongside traditional development finance institutions.

From Aid Dependency to Investment-Led Growth

A central objective of the Humanitarian and Resilience Investing Roadmap is to encourage a transition from aid dependency toward investment-driven economic development.

Speaking on behalf of African Development Bank President Dr. Sidi Ould Tah, Senior Vice President Marie-Laure Akin-Olugbade emphasized the urgency of adopting a new development model.

She noted that public and development finance should increasingly serve as catalysts for private investment rather than acting as permanent substitutes for market-based financing.

The roadmap seeks to establish clearer roles for governments, development institutions and private investors while creating pathways that allow commercial capital to enter markets traditionally viewed as too risky or underdeveloped.

A New Approach for Frontier Markets

Fragile states and frontier economies often face unique barriers to investment.

Challenges such as political instability, limited financial infrastructure, weak regulatory frameworks and inadequate access to international capital markets have historically discouraged private sector participation.

The HRI Roadmap is designed to address these obstacles by creating a structured framework that sequences interventions and coordinates efforts among multiple stakeholders.

Rather than focusing solely on humanitarian assistance or public financing, the initiative aims to build conditions that can attract long-term investment and stimulate sustainable economic activity.

The strategy recognizes that resilience and economic growth are closely interconnected and that private sector development can play a critical role in strengthening both.

World Economic Forum Calls for Long-Term Solutions

World Economic Forum Managing Director Sheba Crocker highlighted the importance of moving beyond fragmented approaches to development assistance.

She stressed that vulnerable communities need more than short-term relief measures; they require investment in businesses, industries and local economies that can generate sustainable livelihoods and long-term prosperity.

The roadmap builds upon the broader global Humanitarian and Resilience Investing initiative and is supported by more than 100 international partners.

According to the WEF, the goal is to create a coordinated framework capable of unlocking investment opportunities while reducing the structural barriers that have limited growth in frontier markets.

Geopolitical Shifts Increase Urgency

The launch of the roadmap comes amid significant changes in the global development finance landscape.

Many traditional donor countries are reassessing aid budgets, while geopolitical tensions and competing priorities have placed pressure on official development assistance programmes.

At the same time, growing global debt burdens and fiscal constraints are limiting the ability of governments in many developing countries to finance large-scale development projects independently.

These dynamics have intensified calls for innovative financing mechanisms capable of mobilizing private capital and reducing dependence on public funding sources.

The HRI Roadmap is positioned as part of this broader effort to reshape development finance in Africa.

Pilot Projects Already Underway

The initiative is not merely a conceptual framework. Pilot projects have already been launched in several countries, including:

• Liberia

• Somalia

• Mozambique

• Djibouti

These early programmes are intended to demonstrate how coordinated investment strategies can help overcome barriers to private sector participation while supporting local economic development.

Lessons learned from these pilot projects are expected to inform future expansion of the roadmap across additional countries and regions.

The pilots will also provide valuable insights into how investment can be effectively deployed in fragile and conflict-affected settings.

Somalia Highlights Challenges and Opportunities

During a panel discussion held alongside the launch, Somalia's Minister of Finance Bihi Iman Egeh emphasized that entrepreneurship is not lacking in fragile states.

Instead, he argued that major obstacles include limited access to financial services, insufficient risk-sharing mechanisms and exclusion from international banking systems.

Many businesses in fragile economies face difficulties accessing credit, securing investment and participating in global financial networks.

Addressing these challenges is seen as essential for enabling local entrepreneurs to scale operations, create jobs and contribute to economic development.

Somalia's experience illustrates the importance of combining financial reforms with broader investment initiatives.

Financial Inclusion as a Development Tool

Panelists highlighted financial inclusion as a critical component of successful investment strategies.

Access to banking services, digital payments and credit facilities can help businesses expand while encouraging greater economic participation among underserved populations.

The discussion emphasized that strengthening financial systems is particularly important in fragile states where formal financial infrastructure is often limited.

Improved access to finance can support entrepreneurship, enhance economic resilience and create new opportunities for individuals and communities.

The roadmap seeks to address these issues by promoting integrated approaches that combine capital mobilization with institutional development.

Learning from Successful Innovation Models

Examples from other African countries were cited as evidence of how innovation can transform markets.

Representatives pointed to Kenya's M-Pesa mobile money platform as a powerful demonstration of how regulatory reforms and digital technology can create entirely new economic opportunities.

M-Pesa has revolutionized financial services across East Africa by enabling millions of people to access payments, savings and financial transactions through mobile phones.

The success of such innovations highlights the importance of creating enabling regulatory environments alongside investment programmes.

Experts argue that capital alone is insufficient without policies that support innovation and market development.

Rural Development Requires Integrated Solutions

Sara Mbago-Bhunu, Director of the East and Southern Africa Division at the International Fund for Agricultural Development (IFAD), emphasized the importance of integrated approaches to rural development.

Drawing on experiences with smallholder farmers, she noted that successful implementation requires more than financial support.

Key elements include:

• Digital infrastructure;

• Financial services;

• Transportation networks;

• Market access systems;

• Capacity-building programmes.

Combining these components can help ensure that investment reaches rural and peri-urban communities where economic opportunities are often limited.

Such integrated approaches are considered essential for achieving inclusive growth.

Climate Resilience Embedded in the Framework

Climate resilience is one of the core pillars of the Humanitarian and Resilience Investing Roadmap.

Many of Africa's fragile states are particularly vulnerable to climate-related challenges, including droughts, floods, food insecurity and environmental degradation.

The roadmap incorporates climate adaptation and resilience measures into its investment framework to ensure that development gains are sustainable over the long term.

By promoting investments that strengthen resilience, the initiative aims to reduce vulnerability while supporting economic growth and social stability.

Climate considerations are increasingly viewed as essential components of modern development finance strategies.

Gender Inclusion as a Strategic Priority

The roadmap also places strong emphasis on gender inclusion and women's economic empowerment.

The initiative aligns with the African Development Bank's Affirmative Finance Action for Women in Africa (AFAWA) programme, which has already disbursed approximately US$1.33 billion to women-led businesses across 45 African countries.

Supporting women entrepreneurs is seen as a critical driver of economic growth, job creation and poverty reduction.

Research consistently shows that increasing women's participation in business and finance can generate substantial social and economic benefits.

The roadmap seeks to ensure that investment opportunities are accessible to women and that gender considerations are integrated into project design and implementation.

Supporting a New African Financial Architecture

The Humanitarian and Resilience Investing Roadmap aligns closely with broader efforts to reform development financing across Africa.

It supports the objectives of the New African Financial Architecture for Development (NAFAD), endorsed through the Abidjan Consensus in April 2026.

NAFAD seeks to create more effective financing mechanisms capable of mobilizing domestic and international resources while supporting sustainable development objectives.

The roadmap complements these efforts by focusing specifically on frontier markets and fragile states where financing needs are often greatest.

Building a More Investment-Oriented Future

The launch of the Humanitarian and Resilience Investing Roadmap signals a growing recognition that traditional aid models alone are unlikely to meet Africa's development needs.

By creating pathways for private investment, strengthening financial systems and supporting resilience-building initiatives, the roadmap aims to unlock new opportunities for growth across some of the continent's most challenging environments.

As pilot projects advance and additional countries engage with the framework, policymakers and development institutions will closely monitor its ability to attract investment and generate measurable economic impact.

If successful, the initiative could become a model for how development finance is structured in fragile economies—not only in Africa but around the world—helping transform regions traditionally dependent on aid into engines of sustainable, investment-driven growth.