Banking On Africa: Unlocking Capital And Partnerships For Sustainable Growth

A new white paper by the United Bank for Africa (UBA) has called for a fundamental shift in how Africa funds its growth, one that redefines the continent’s development narrative from one of dependency to one of self-determination.

Titled “Banking on Africa: Unlocking Capital and Partnerships for Sustainable Growth,” the report reveals that Africa holds an estimated $4 trillion in domestic financial assets, yet less than 15 percent of this capital is directed toward productive infrastructure—the very foundation of economic expansion.

“This is not a scarcity of capital, but an opportunity for more effective allocation,” said Oliver Alawuba, UBA Group Managing Director. “Africa’s transformation will be built on African capital, partnerships, and innovation working together.”

From Aid to Investment: A New Growth Paradigm

UBA’s paper highlights a new paradigm rooted in investment-centered partnerships rather than aid-heavy models. It calls for African institutions to integrate domestic and international capital strategies, blending commercial viability with social impact through “solution-oriented finance.”

This reframing, the report argues, could unlock a powerful multiplier effect—reducing reliance on external funding, enhancing sovereignty, and attracting global partners into African-led financing mechanisms.

Infrastructure as the Engine of Integration

The paper emphasizes that the path to inclusive growth lies in mobilizing domestic institutional capital for infrastructure development.

It cites successful national models:

• Nigeria’s InfraCredit which has facilitated over $278 million in infrastructure bonds tailored for pension fund investment.

• Kenya’s Pension Funds Investment Consortium (KEPFIC), pooling 24 schemes to raise $113 million for infrastructure projects, has with oversubscription rate of 157 percent.

• Ghana’s Infrastructure Investment Fund (GIIF), co-financing with banks and DFIs to leverage $325 million in equity across a $3.6 billion project portfolio.

Such initiatives, UBA notes, demonstrate how institutional investors can channel long-term capital into energy, transport, and digital infrastructure—sectors vital for regional competitiveness.

AfCFTA: Powering Trade and Connectivity

Central to UBA’s vision is the African Continental Free Trade Area (AfCFTA), described as “the architectural blueprint for integration.” The bank projects intra-African trade to grow by over 12 percent in 2025, reaching $220 billion, driven by new market access for SMEs and more resilient supply chains.

The report further highlights the Pan-African Payment and Settlement System (PAPSS)—the digital backbone of AfCFTA, as a transformative tool. By enabling instant payments in local currencies and saving the continent $5 billion annually in transaction costs, PAPSS promises to accelerate trade velocity and financial inclusion.

Sustainability and Green Finance

The paper calls on African banks and governments to align infrastructure growth with sustainability principles, advocating for green bonds and blended finance mechanisms that attract both domestic and global investors. It urges the creation of “appropriate investment vehicles” that balance environmental responsibility with commercial returns, ensuring that Africa’s infrastructure boom does not come at the planet’s expense.

A Collaborative Roadmap for Action

UBA’s proposed roadmap identifies five areas for reform:

1. Scaling blended finance to de-risk private investment.

2. Pooling regional capital for large-scale projects.

3. Developing green and infrastructure bonds for pension funds.

4. Harmonizing regulations to ease cross-border investment.

5. Leveraging digital infrastructure for transparency and efficiency.

Africa’s Global Bank, Africa’s Vision

Operating in 20 African countries and global financial centers, including New York, London, Paris, and Dubai, UBA positions itself as a bridge between African opportunity and global capital. Through initiatives like its $6 billion AfCFTA partnership and collaboration with the African Development Bank, UBA is demonstrating how financial institutions can turn policy blueprints into bankable realities.

“Africa doesn’t lack capital—it lacks coordination,” the report concludes. “By unlocking even a fraction of its own financial resources, the continent can finance the roads, power grids, and digital highways that will define the next century of African prosperity.”

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