Africa Capital Grows to 2 Trillion as Funding Gap Persists
Institutional capital in Africa rose to 2 trillion dollars last year. A new report says these funds are not being used to finance vital infrastructure projects.
The Africa Finance Corporation (AFC) reported institutional capital across Africa rose 25% to $2 trillion in 2023. This increase from $1.6 trillion was driven by record prices for Gold boosting central bank reserves. Investors face a liquidity paradox where capital remains in low-risk bonds instead of funding infrastructure projects.
### Why Record Capital Is Not Reaching Infrastructure The AFC's State of Africa's Infrastructure Report highlights a disconnect between capital accumulation and job creation. While sovereign wealth funds and central banks hold record reserves, geopolitical shifts have restricted access to foreign development funding.
