Unlocking Private Capital in Africa: A Call for Action from Business Leaders

On April 27, 2026, Addis Ababa became the stage for a pivotal gathering of African business leaders, investors, and policymakers, all united under the common goal of transforming how private capital is mobilized and implemented throughout the continent. This meeting was organized by the UN Global Compact in partnership with the United Nations Economic Commission for Africa (ECA) and the United Nations Development Programme (UNDP), coinciding with the 12th Africa Regional Forum on Sustainable Development (ARFSD-12).

The forum, aptly themed "Forward Faster - Scaling Private Sector Partnerships to Accelerate the SDGs in Africa," served as a critical platform to discuss the persistent challenges that hinder investment in viable projects aligned with the Sustainable Development Goals (SDGs) and Africa's Agenda 2063. Experts acknowledged that a significant gap persists between the availability of capital and the execution of projects, often stalling sustainable development initiatives across the region.

Discussions at the forum highlighted five core areas where collaborative efforts between the private sector, financial institutions, and government entities could catalyze impactful changes:
1. Water and sanitation infrastructure
2. Affordable and reliable energy
3. Sustainable urban development
4. Development of industrial value chains
5. Expansion of blended finance mechanisms to attract private investments.

Dr. Hervé Lado, Africa Head of the UN Global Compact, emphasized a crucial insight: "Africa does not lack capital; it lacks the enabling environments to deploy it effectively at scale." He articulated that African businesses are eager to take the lead but require guidance in creating bankable projects. Moreover, credible partnerships and conducive policy frameworks are essential in facilitating the flow of private capital into areas that can maximize positive impacts on both people and the planet.

A highlight of the forum was a fireside chat with Mr. Deribe Asfaw, CEO of the Cooperative Bank of Oromia (CoopBank). He shared innovative strategies that African financial institutions might employ to bridge financial gaps, particularly for micro, small, and medium-sized enterprises (MSMEs). Mr. Asfaw illustrated this with a success story from CoopBank’s Michu platform, which leverages data for credit scoring and provides uncollateralized loans to underserved populations in various sectors such as trade, health, and agriculture. With over ETB 52 billion (approximately USD 400 million) distributed to nearly three million customers, the platform notably achieved an impressive inclusion rate, with 80% of its beneficiaries being youth and women, while also creating around 2.7 million jobs.

Roundtable segments of the forum focused on dissecting ongoing structural barriers that impede investment, notably project preparation deficiencies and perceived market risks. Participants shared successful strategies from across the continent, emphasizing regional collaboration and innovation in crafting investable opportunities.

In her closing remarks, Ms. Ngone Diop, Director of the ECA Sub-Regional Office for West Africa, reinforced the perspective that the private sector's engagement transcends beyond just financial contributions; it is integral to technological advancements, job creation, and industrial transformation. She stated, "The scale of financing, innovation, and execution required to achieve our development goals cannot be met solely by public resources. The active involvement of the private sector is vital to foster growth and solutions across essential sectors—be it energy, infrastructure, agriculture, or digital innovation."

The discussions and outcomes from this forum directly fed into the intergovernmental discussions at ARFSD-12 and are expected to influence global dialogues during the forthcoming High-Level Political Forum. It became clear that Africa's developmental journey hinges on its ability to mobilize and efficiently deploy private capital. In a landscape where public resources are strained, the establishment of partnerships among governments, businesses, and development institutions is critical.

The UN Global Compact continues to drive initiatives like Forward Faster, aimed at enabling companies to enhance capabilities, set ambitious goals, and increase accountability while scaling viable solutions in their markets. This initiative endeavors to align capital, policy, and partnerships, ensuring that sustainable development is not only feasible in Africa but also a lucrative investment opportunity.

In closing, the synthesis of ambition, commitment, and structured action demonstrated at the forum reaffirms that the time for transformative change in Africa is now. The collaborative effort to unlock and invest in the continent's potential is a crucial step towards realizing the SDGs and fostering sustainable development across the region.