African business leaders, international investors, and senior policymakers have called for a fundamental shift in the way private capital operates on the continent. The high-level business forum, organized in Addis Ababa by the United Nations (UN) Global Compact in collaboration with the Economic Commission for Africa (ECA) and the UN Development Programme (UNDP), has pointed toward a clear direction for moving beyond rhetoric and into practical action and investment.
Held under the theme “Forward Faster,” the forum aimed to bridge the significant gap between Africa’s vast development opportunities and the flow of capital into the continent. Although the continent’s development needs are immense, participants collectively confirmed that the primary obstacle is not a lack of capital, but rather the absence of conducive structural conditions necessary to deploy that capital at scale.
To address these bottlenecks, the forum identified five strategic focus areas capable of bringing rapid and systemic change to the continent: water and sanitation infrastructure, which is vital for public health and industrial stability; affordable and reliable energy as a prerequisite for digital and manufacturing growth; sustainable urban development to guide the continent’s rapid urbanization through “smart” infrastructure; industrial value chains by shifting from raw material exports to value-added production; and the expansion of blended finance, utilizing public and philanthropic funds to de-risk investments and attract private investors.
Dr. Hervé Lado, Head of Africa at the UN Global Compact, emphasized that while the private sector is ready to lead, governments must facilitate “enabling policy environments,” noting that Africa does not lack capital, but rather the conditions to deploy it at scale.
The forum moved beyond theory by showcasing successful practical experiences, such as those presented by Deribe Asfaw, CEO of Cooperative Bank of Oromia (CoopBank). He demonstrated how digital innovation can provide financial access to Micro, Small, and Medium Enterprises (MSMEs). Through its digital, collateral-free lending platform called “Michu,” the bank has disbursed over 52 billion Birr (approximately $400 million) to nearly 3 million customers. Notably, 80% of these beneficiaries are youth and women, resulting in the creation of nearly 2.7 million jobs.
Deribe stated, “Aligning with the Sustainable Development Goals (SDGs) is not just a policy decision for us; it is our identity.” In her closing remarks, Ngone Diop, Director of the Economic Commission for Africa (ECA) for West Africa, stressed that the private sector’s role is not merely supportive but is the primary engine of industrial transformation.
She highlighted that the private sector is more than just a source of funding; it is the wellspring of job creation, technology, and essential solutions for the population, particularly in the water, energy, and agriculture sectors. As pressure on government resources increases globally, the forum clearly indicated that the success of Africa’s Agenda 2063 depends on the strategic participation of the private sector. The “Forward Faster” initiative continues to work toward making the continent’s development goals profitable investment opportunities rather than just moral obligations.
