Africa Has Capital, The Question Is Whether It Can Put It to Work

Etim Etim Aigboje Aig-Imoukhuede celebrates his 60th birthday on September 24, prompting reflection on the role of capital markets in Africa's economic development. Despite being labeled as "capital-starved," the continent possesses substantial pools of savings across various financial institutions. However, the challenge lies in connecting these savings to the businesses and infrastructure projects that require funding.

Aigboje Aig-Imoukhuede, a Nigerian banker, investor, and entrepreneur, focuses on this gap in capital markets, recognizing that Africa needs more than just financial products. The key is creating a connected financial system that enables capital to travel further and reach its intended destinations. Africa faces an estimated $400 billion annual development financing gap, even as it has significant domestic capital resources.

The African Development Bank's efforts to build a new financial architecture aim to mobilize these resources effectively. Aigboje Aig-Imoukhuede's career provides insight into the problem's complexity, as it spans investment banking, securities, asset management, wealth management, insurance, trustees, and technology. The solution lies in connecting the various parts of the financial system to make capital more useful.

Africa's challenge is that these channels often stop at national borders, with 54 countries and multiple currencies.