By: Energy capital & power

Pan-African institution the Africa Finance Corporation (AFC) has identified over $4 trillion in domestic savings that could drive the continent’s infrastructure transformation.

In its 2025 State of Africa’s Infrastructure report, which was launched last week, the AFC estimates that there is over $1.1 trillion in potential long-term capital from pension funds, insurance, sovereign wealth funds and public development banks. The AFC has also identified $2.5 trillion in commercial banking assets and over $470 billion in central bank reserves.

“This report provides a practical roadmap for how Africa can channel its significant financial strength into the infrastructure needed to drive industrial transformation,” stated Samaila Zubairu, President and CEO, AFC. 

The report highlights Africa’s energy underinvestment, with power generation per capita stagnant since 2008, and contrasts it with rapid rail development – 7,000km of new lines planned across the continent. The report also highlights strategic industries like steel and fertilizers as suitable for domestic expansion.

As such, the AFC has called for pooled investment platforms, regional grid integration and coordinated development of industrial value chains to fully harness the continent’s financial and resource potential.