Africa Faces $100 Billion Annual FDI Shortfall – Adesina Warns
The African Development Bank Group (AfDB) President, Dr. Akinwumi Adesina, unveiled a stark investment reality: Africa is grappling with a $100 billion yearly gap in foreign direct investment (FDI). Speaking at the Kenya Law Society’s 2025 Annual Conference, Adesina tied this shortfall directly to fragile legal systems and governance flaws across the continent.
In his keynote address to more than 1,200 legal professionals and policymakers, he warned that weak rule of law rankings, mounting debt vulnerabilities, and exploitative “vulture fund” lawsuits threaten Africa’s investment potential. “When Africa stands for rule of law, the world will stand with Africa,” he declared, urging bold legal reforms as key to unlocking growth.
Legal Frameworks as Gateways to Investment
Adesina emphasized that investors flock to nations marked by stability, transparency, and judicial independence. Strengthening institutions—especially courts, intellectual property protections, and public finance systems—creates the trust international capital requires. Justice, he stressed, isn’t an afterthought; it’s the foundation of development.
Transformative Solutions in Motion
The AfDB chief spotlighted real-world examples of reform. In countries like Rwanda and Côte d’Ivoire, establishing specialized commercial courts has cut resolution times and unlocked over $1 billion in investments. Seychelles’ constitutional reforms, which made sovereign borrowing contingent on parliamentary approval, successfully reduced its debt-to-GDP ratio from above 100% to under 55%.
Adesina also called for revising natural resource laws so that local communities—not just elites—benefit from extractive wealth. He highlighted the value of sovereign wealth funds for safeguarding long-term prosperity and urged the development of robust, African-led arbitration systems.
A Plea to Africa’s Legal Guardians
Closing his speech with urgency, Adesina tasked the legal community with championing accountability and transparency. He urged them to serve as “guardians of promise and stewards of destiny” by protecting public finance systems and taking steps to end exploitative debt scenarios.
