Africa's Financial Bottlenecks Are Costing Jobs, AfDB Chief Warns at Luanda Summit

Dr Ould Tah emphasized that the institution's performance should be measured through completed projects and improvements in people's lives rather than financial commitments alone.

Africa needs financial institutions that respond more quickly to the needs of businesses if the continent wants to turn its financial resources into stronger economic growth, according to African Development Bank Group President Dr Sidi Ould Tah. Speaking at the opening of the Africa Financial Summit (AFIS) in Luanda, Angola, on 3 November 2026, he called for closer cooperation among African financial institutions and faster access to funding for businesses. His message focused on the need to improve financial coordination, reduce administrative delays and make investment resources more accessible to enterprises that create jobs and support local economies.

During his keynote address, Dr Ould Tah introduced the New African Financial Architecture for Development (NAFAD) as a framework for strengthening cooperation across Africa's financial system. The initiative is designed to improve how financial institutions mobilise capital, share investment risks and coordinate their activities to support economic development. It provides a common framework for national, regional and continental institutions to work together more effectively without compromising their individual responsibilities or operating mandates.

The African Development Bank president highlighted a major challenge facing businesses across the continent, explaining that financial institutions often operate according to timelines that do not match the needs of entrepreneurs and growing companies. Banks and development institutions follow reporting schedules, investment periods and approval procedures, but businesses must respond quickly to customer orders, market opportunities and workforce requirements. These differences can delay financing decisions, prevent companies from expanding and contribute to missed opportunities for economic growth and employment.

Closing the Gap Between Financial Institutions and Businesses

Dr Ould Tah warned that weak coordination between institutions can create economic losses without any single organization being directly held responsible for the consequences. Businesses may lose opportunities to expand, farmers may struggle to reach markets and countries may continue importing products that could be manufactured locally because necessary financing is not available at the right time. He encouraged financial institutions to simplify procedures, improve cooperation and develop financial products that better reflect the practical challenges faced by businesses, particularly small and medium-sized enterprises (SMEs).

The NAFAD framework is intended to help financial institutions combine their strengths and work toward shared development priorities through better coordination and more effective financial arrangements. Dr Ould Tah emphasized that the continent's financial assets should not be treated as unrestricted money available for immediate investment, since different institutions manage resources belonging to different owners and operate under separate financial obligations. Stronger cooperation must respect these responsibilities and the principles of subsidiarity and complementarity, allowing each institution to contribute according to its mandate and capabilities.

Stronger Partnerships to Mobilise Investment Across Africa

Angola's Minister of State for Economic Coordination, José de Lima Massano, emphasized that Africa's economic transformation depends heavily on the strength, efficiency and depth of its financial systems. He described multilateral financial institutions as important sources of investment and economic development, calling for greater capacity to mobilise resources and stronger connections with national financial institutions. His remarks reflected the wider discussion at the summit about making Africa's financial resources more effective in supporting businesses and productive economic activities.

International Finance Corporation (IFC) Managing Director Makhtar Diop highlighted ongoing cooperation with African financial institutions, including the African Development Bank Group, the African Export-Import Bank (Afreximbank) and the Development Bank of Southern Africa (DBSA). He explained that the IFC and the African Development Bank Group were holding joint discussions with African sovereign wealth funds and institutional investors to mobilise long-term financing for productive sectors. These efforts are intended to connect available investment resources with businesses and economic activities that require patient capital and stronger financial support.

Diop proposed establishing a private sector council in every African country to identify business-related challenges and advise governments on necessary reforms. Such councils could provide a direct channel for companies to explain regulatory problems, investment barriers and policy changes needed to support private sector development. Stronger cooperation between governments, financial institutions and businesses could help ensure that economic reforms respond to practical market conditions and create opportunities for investment.

Turning Africa's Financial Resources Into Measurable Economic Results

Dr Ould Tah stressed that Africa's growing young population should not automatically be viewed as an economic advantage without sufficient investment in education, skills development and productive employment. He explained that the continent must create conditions that allow young people to contribute meaningfully to economic growth through better training and access to jobs. Financial institutions have an important role in supporting businesses capable of creating employment and strengthening industries that can absorb Africa's expanding workforce.

The African Development Bank Group is reviewing and simplifying its internal processes to make financing procedures clearer and more predictable for clients. The changes are intended to help borrowers understand application requirements, identify the officials responsible for different stages and know how long financing decisions are expected to take. Dr Ould Tah emphasized that the institution's performance should be measured through completed projects and improvements in people's lives rather than financial commitments alone.

The African Development Bank Group participated as a major partner in AFIS 2026, which took place in Luanda on 3–4 November and brought attention to the challenges facing Africa's financial sector. The Bank Group hosted a dedicated event titled "Making the Most of NAFAD to Boost Africa's Real Economy," focusing on capital mobilisation, stronger project preparation and faster implementation of development projects. The discussions reinforced the importance of building a more coordinated financial system that can direct investment toward businesses, expand economic opportunities and deliver visible improvements for communities across Africa.