The International Monetary Fund, IMF, has urged Nigeria and other African countries to strengthen macro-economic stability, improve productivity and enhance data transparency to attract a larger share of global investment needed to drive the continent’s development.
Speaking at a panel session during the ongoing ASIS 2026 Summit in Lagos, IMF’s Alternate Executive Director for Nigeria, Afolabi Olowookere, said that Africa remains significantly underrepresented in global capital flows despite its vast economic potential.
Olowookere added that although Africa accounts for nearly 20 per cent of the world’s population, it attracts less than five per cent of global foreign investment due to its relatively small contribution to global economic output and persistent structural challenges.
He said, “If we must attract more capital, we must also improve productivity, accelerate economic growth and maintain a more stable macroeconomic environment.”
He added that improving data availability, quality and transparency across the continent would enable investors to make better-informed decisions, particularly as artificial intelligence plays an increasingly important role in investment analysis.
He added, “There is a lot of capital around the world looking for investment opportunities.
“Africa must make itself attractive while also mobilising more domestic capital, which can, in turn, attract even more foreign investment.”
On financing development, Olowookere stressed the need for a stronger domestic revenue mobilisation, noting that many African countries stillq generate less than 10 per cent of their Gross Domestic Product, GDP, as government1 revenue.
He said increasing revenue collection to above 15 per cent of GDP would provide governments with greater fiscal space to fund healthcare, education and social protection programmes, reduce dependence on borrowing and free up more private capital for investment.
Olowookere averred that financing Africa’s development will require a coordinated effort involving governments, domestic investors, international financial institutions and philanthropic organisations.
Also speaking, Associate Director of Investing in West Africa at Acumen Fund, Bowofade Elegbede, described Africa’s investment gap as both a demand and supply challenge, noting that there is often a disconnect between available capital and businesses seeking funding.
He argued that while investors operate within specific investment mandates, many African businesses have yet to position themselves as bankable investment opportunities.
Similarly, the Head of the Nigeria Infrastructure Fund, NIF, Pius Aniedo, identified exchange rate volatility, weak contract enforcement and poor corporate governance as major impediments to attracting investment.
He called for stronger legal enforcement, improved corporateq governance standards and the development of more bankable projects, backed by project preparation facilities and guarantee mechanisms.
Vice President for Africa at Rockefeller Philanthropy Advisors, Henrietta Bankole-Olushina, challenged the perception that Africa lacks capital, arguing instead that the continent should focus on deploying its existing resources more effectively.
She explained that philanthropic funding should serve as catalytic capital by supporting early-stage projects, generating critical data and de-risking investments before larger private investors come on board. Source: The Guardian