AfDB President calls for stronger governance to close Africa’s $100bn investment gap
President of the African Development Bank (AfDB), Dr Akinwumi A. Adesina, has urged African nations to strengthen governance, ensure transparency in public finance, and reform judicial systems as part of efforts to attract investment and close the continent’s USD100 billion annual foreign direct investment (FDI) gap.
Delivering the keynote address at the Kenya Law Society’s 2025 Annual Conference in Nairobi, Dr Adesina stated that the rule of law, judicial independence, and respect for contracts were as vital to investment inflows as political stability or natural resources.
He emphasised that Africa’s wealth in oil, gas, and minerals had not translated into shared prosperity due to weak governance and a lack of accountability.
Drawing lessons from Norway’s USD1.9 trillion sovereign wealth fund, he urged African countries to adopt transparent natural resource laws, invest revenues in education and infrastructure, and establish sovereign wealth funds to guarantee long-term growth.
Rising Debt Burden
The AfDB President also expressed concern over Africa’s increasing public debt, which has surpassed USD1.3 trillion, with a significant share owed to commercial creditors.
Dr Adesina cautioned against the activities of so-called “vulture funds” that exploit legal loopholes to sue nations for large debt repayments.
He stressed the need for African judiciaries to protect national assets from predatory claims and encouraged the use of African arbitration systems.
“Investors choose foreign jurisdictions because they trust their independence. African courts must rise to the challenge and instil the same confidence,” he said.
Dr Adesina revealed that, through its Africa Legal Support Facility, the AfDB had assisted more than 50 African countries in renegotiating contracts, helping to avert over USD4 billion in potential losses.
Commercial Court Reforms
Citing examples of judicial reforms, Dr Adesina highlighted AfDB-supported modernisation of commercial courts in Rwanda, Côte d’Ivoire, Ghana, and Malawi, which reduced dispute resolution periods and boosted investor confidence.
“In Rwanda, reducing dispute resolution time from 500 to 230 days attracted $2 billion in foreign investment. Ghana’s restructuring of commercial courts improved contract enforcement rankings and business confidence,” Dr Adesina stated.
Linking Justice to Development
Beyond economics, Dr Adesina linked fiscal reforms to justice and inclusive development. He reiterated the AfDB’s zero-tolerance stance on corruption, insisting that “every dollar must deliver schools, hospitals, infrastructure, or jobs.”
Dr Adesina further stressed the importance of fair compensation in infrastructure projects, noting that AfDB interventions in Kenya, Uganda, and Côte d’Ivoire had ensured displaced communities, including those without land titles, received full compensation and support to rebuild their livelihoods.
A Call to Action
Dr Adesina urged Africa’s legal and judicial institutions to uphold constitutionalism, improve oversight of public debt, and guarantee that resource wealth benefits citizens rather than a privileged few.
“There is no such thing as a natural resource curse. What exists is a governance curse. When Africa stands for the rule of law, the world will stand with Africa,” he remarked.
The AfDB President concluded by calling for a future in which Africa’s courts, parliaments, and financial institutions become guardians of public trust, thereby attracting investment, advancing justice, and delivering prosperity.
