AVCA’s Sustainable Investing Summit Spurs Action on Mobilising Private Capital for Africa’s Growth

The African Private Capital Association (AVCA) hosted its third Sustainable Investing in Africa Summit (SIAS), bringing together over 150 global leaders, investors, and change agents to ignite discussions on advancing sustainable investment across the continent. The one-day summit explored innovative approaches to mobilising local and global capital, pushing for immediate action on climate change and inclusive growth in Africa.

In her opening address, AVCA CEO Abi Mustapha-Maduakor highlighted Africa's potential to generate innovative solutions despite existing challenges. She remarked, "Africa is brimming with creativity, resilience, and untapped potential. Yet, we continue to face long-standing issues such as infrastructure deficits and limited financial inclusion. Today, we are witnessing a convergence of capital, expertise, and visionary leaders working together to champion sustainable development. This is our chance to drive transformative change."

A recurring theme throughout the summit was the need to mobilise domestic capital to complement foreign direct investment (FDI). Zee de Gersigny, Head of Venture and Early Stage Financing Vehicles at FSD Africa Investments, emphasised that African domestic investors, especially pension funds and financial institutions, control approximately $2 trillion in assets that could be directed towards vital sectors like renewable energy, education, and water sanitation. Speakers highlighted key markets, such as Kenya and South Africa, where regulatory changes have enabled pension funds to invest in non-traditional asset classes like infrastructure.

Speakers noted that Africa is a key region where impact investments can yield healthy returns. However, to stimulate investment at the pace and scale needed for Africa to meet the sustainable development goals (SDGs), investors need to re-imagine what successful investment in Africa looks like. Tom Hall, Head, Social Impact and Philanthropy, UBS, said: “The power of partnerships is crucial in mobilising capital efficiently, and we need innovative blended finance solutions that we can scale. By aligning financial returns with transformative impact, we can channel significant resources to tackle Africa’s most pressing challenges.”

‘Tokunboh Ishmael, Co-founder and Managing Director, Alitheia Capital, said: “It's important to redefine "returns" to value impact alongside financial gains, rather than comparing African investments to those in Silicon Valley”. Runa Alam, Co-founder and Chief Executive Officer, Development Partners International, added: “Impact for us is defined by job creation, gender equity and financial inclusion. We hold financial returns and impact as equally important because we need to do both in Africa.”

Speakers also noted that concerns over liquidity and exit options were key barriers to private investment in Africa. Albert Alsina, Founder and Chief Executive Officer, Mediterrania Capital Partners, said: “Barriers to exits stem from opaque markets, even for strong-performing companies in Africa”. Panellists agreed that strengthening public markets and secondary markets would help overcome the perception that there is a lack of exit options in Africa. 

Ross Ferguson, Senior Private Sector Adviser, UK Foreign, Commonwealth, and Development Office, proposed that public entities could play a much more active role derisking public markets in Africa. He pointed to Mobilist, a UK government programme, that invests equity capital in emerging and frontier market companies to help them list on public markets and stock exchanges. 

The event concluded with a call for partnerships, collaboration, and innovation to ensure Africa meets the SDGs and drives lasting impact beyond 2030.