A new report by the United Bank for Africa has revealed a critical paradox stifling Africa’s economic potential: while the continent holds a massive $4 trillion in untapped capital, its most promising sectors remain starved of investment. The analysis attributes this to a “systematic misallocation” of funds, with most of the continent’s domestic financial assets flowing into short-term government debt. This leaves transformative areas like small business growth, climate finance, and crucial infrastructure severely underfunded. Experts argue that strategically redirecting this capital is the key to unlocking a new era of prosperity. They maintain that the real opportunity lies in building the railways and digital networks that connect Africans, thereby accelerating the success of the continental free trade agreement.
SEMAFOR
