AfDB and Asian Experts Call for Stronger Institutions to Unlock Africa’s Development Finance

The discussion took place during the fifth African Economic Outlook seminar for Asian audiences, convened by the African Development Bank Group and the Korea Institute for International Economic Policy.

African and Asian economic experts have called for stronger institutions, better project preparation and deeper partnerships to help Africa mobilise development financing at scale as geopolitical tensions, economic volatility and global fragmentation reshape investment flows.

The discussion took place during the fifth African Economic Outlook seminar for Asian audiences, convened by the African Development Bank Group and the Korea Institute for International Economic Policy. The online event was co-hosted by the Bank's Asia External Representation Office, its Macroeconomic Policy, Forecasting and Research Department and KIEP, and included a presentation of the African Economic Outlook 2026 under the theme "Mobilizing Africa's Development Financing at Scale in a Fragmented World."

The report projects Africa's real GDP growth at 4.2% in 2026, down from an estimated 4.4% in 2025, before recovering to 4.4% in 2027. Speakers argued that the continent's ability to turn economic resilience into lasting gains will depend heavily on productive investment, job creation, institutional strength and greater capacity to organise available capital effectively.

Stronger Institutions Seen as Central to Africa's Financing Push

KIEP Vice President for External Affairs Sungbae An said Africa's economic direction carries wider consequences for global growth, supply chain resilience and sustainable development. He said the continent has shown resilience in the face of repeated global shocks, but the next challenge is turning that resilience into structural transformation, better jobs and lower poverty.

Several speakers placed institutional reform at the centre of that effort. Shanghai Ocean University Associate Professor Youzhou Wei said African countries need to take greater control of their development path through systematic institutional reform and stronger financial agencies. Karanu Muchiri, President of the International Council of Japan's National Graduate Institute for Policy Studies, said reform of the global financial architecture must be accompanied by stronger domestic capabilities so that incoming capital produces real economic transformation.

Innovative Finance Must Turn Projects Into Investable Opportunities

Veda Vaidyanathan of India's Centre for Social and Economic Progress said Africa should move beyond being viewed mainly as a destination for capital and position itself as a strategic production and investment partner. She argued that future development finance will depend less on whether capital exists and more on whether countries can organise it effectively.

KIEP's Seoni Han highlighted innovative financing as a way to improve efficiency and institutional capacity, describing it as a form of institutional design that can convert high-risk development needs into projects that investors can support without creating unsustainable debt.

African Development Bank experts also stressed the importance of building a stronger pipeline of bankable projects. Principal Research Economist Francis Anguyo said institutional investors need clear revenue models, credible sponsors, strong governance and projects that meet rigorous standards, with the objective focused on improving access to capital rather than increasing risk exposure.

Africa–Asia Partnerships Gain Importance in a Fragmented Global Economy

Anthony Simpasa, Director of the Bank Group's Macroeconomic Policy, Forecasting and Research Department, said investor confidence ultimately depends on trust, which is shaped by the quality of institutions, governance and implementation capacity.

Closing the seminar, Naoshige Kinoshita of the Bank Group's Asia External Representation Office said Africa and Asia are becoming more economically interconnected even as the global environment grows more uncertain. He argued that meeting Africa's financing needs will require not only larger volumes of capital, but deeper partnerships, greater innovation and stronger trust between institutions and markets.

The seminar reinforced a common message running through the African Economic Outlook 2026: financing alone will not deliver transformation unless it is supported by credible institutions, investable projects and partnerships capable of turning capital into jobs, production and long-term development.