Africa's Capital to Reach $2 Trillion by 2025, AFC Reports

The African Finance Corporation (AFC) has reported that Africa's capital is expected to surge by 25% to reach $2 trillion by 2025. This growth is partly attributed to global market dynamics, particularly the rise in gold prices.

However, the report emphasizes that despite the increase in capital held by African institutions, there remains a significant underutilization in infrastructure financing. The AFC notes that while capital availability has improved, the allocation strategies remain overly conservative, which hampers the deployment of funds for industrial development.

The report comes at a time when African countries are facing increasing difficulties in accessing external financing due to global economic shocks and geopolitical uncertainties. It underscores the urgent need to redirect domestic capital towards infrastructure development to bridge funding gaps and drive sustainable economic growth across the continent.