The All Africa Pension Summit (AAPS) 2025 provided a crucial forum for African financial leaders to strategise on harnessing the continent’s vast capital reserves.
In a high-impact keynote address on Day Two of the Summit, Mr. Admassu Tadesse, President and Managing Director of the Trade and Development Bank (TDB) Group, articulated a bold vision for Africa’s economic future, centered on the African Continental Free Trade Area (AfCFTA) and the transformative role of African capital.
Tadesse’s address stressed that while Foreign Direct Investment (FDI) is desired, the continent’s own capital must lead the way, not just in volume, but in providing catalytic character.
AfCFTA as Institutional Infrastructure
Tadesse proclaimed that Africa is entering a “new era: the age of the African Continental Free Trade Area (AfCFTA).” This landmark agreement, he noted, is not merely about trade, but about building the fundamental structures needed for unified economic growth as explained below;
Beyond Physical Infrastructure: He stressed that the focus has shifted from only discussing physical connections (roads, rail) to building institutional infrastructure through the AfCFTA itself.
Comprehensive Protocols: He observed that the AfCFTA’s power extends well beyond tariff reductions. It is developing a range of complementary protocols designed to strengthen continental integration, including:
The Investment Protocol, which aims to streamline investment processes across Africa.
Protocols covering the free movement of people, trade in services, and financial technology, all designed to deepen Africa’s economic transformation and unity.
This institutional framework, Tadesse observed, is key to unlocking the common African market first envisioned in the 1980 Lagos Declaration.
The Character of African Capital
In addressing the question, “What can we do to unleash investment?”, Tadesse pointed to a critical realisation, noting that Africa’s own savings and capital, while significant, need to possess a specific quality to truly drive transformative growth.
Tadesse argued that the best way to ask for investment from the rest of the world is to lead the way with our own capital. “African capital must prove the point, demonstrate it to build credibility with global investors,” he asserted.
He explained that African capital must provide more than just volume; “…it needs to provide character, specifically by being catalytic and pioneering,” he stated, noting that TDB Group, as a multinational institution, views itself as a direct believer in this potential, leveraging its own balance sheet to demonstrate viability.
Investment Ecosystem Challenges
The Summit conversations highlighted systemic issues that must be resolved to unlock the full potential of African pension capital, some of which include;
Fragmentation and Untapped Potential
Meshach Bandawe, Secretary General of the Africa Social Security Association (ASSA), emphasised the pressing issue of coordination. He noted that fragmented initiatives across the continent mean the potential remains locked, estimating that greater collaboration could unlock resources well beyond the currently underutilised $700 billion to $1.3 trillion, potentially reaching $1.7 trillion in untapped resources.
Bankability and Due Diligence
Michael Sseguya, Executive Vice President, Financial Institutions Group at Stanbic Bank Uganda, shifted the focus to the practical challenge of turning capital into actual projects. He noted that “the real challenge isn’t always financing; it’s identifying truly bankable projects.”
Sseguya noted that banks play a critical role in bridging this gap by clarifying risk, conducting due diligence and connecting institutional capital to viable opportunities.
He explained that Stanbic Bank’s purpose is to “drive Africa’s growth by structuring investor-friendly, risk-aligned infrastructure vehicles and mobilising both domestic and international capital into sustainable projects.”
The consensus from the Summit is clear: Africa has the capital, but harnessing it requires strategic leadership from institutions like TDB Group, enhanced coordination from industry bodies, and professional structuring from financial institutions to make projects globally investable. Africa must now learn from global best practices to remove the remaining barriers to investment.