Webber Wentzel Urged African Domestic Capital Investment
The law firm advocated for utilizing regional savings to finance infrastructure projects across the African continent.
Updated on Oct. 13, 2026 in Africa
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Should African nations prioritize domestic savings over international investment to fund their infrastructure projects?
Law firm Webber Wentzel has recommended that Africa leverage its vast domestic savings to fund business and infrastructure development. The firm suggests this strategy could help reduce reliance on external financing and mitigate currency risks.
Why it matters
Tightening global development finance and shifting investment patterns make alternative local funding sources essential for regional growth. Utilizing these resources may improve project stability and reduce repayment costs associated with foreign currency borrowing.
Africa holds an estimated $4 trillion in total domestic savings, with pension and insurance funds currently managing over $1.1 trillion in long-term institutional capital. Much of this liquidity remains tied to low-risk, short-term instruments rather than long-term infrastructure investment.
The players
Webber Wentzel
This law firm provides legal and strategic advice to clients operating within the African business and infrastructure sectors.
Africa Finance Corporation
This institution focuses on providing and promoting infrastructure solutions and financing across the African continent.
The details
To successfully mobilize these funds, experts suggest that development finance institutions must work to mitigate investment risks for the private sector. Additionally, fostering deeper local capital markets and issuing local-currency financing would prevent the high repayment costs caused by currency mismatches in projects like the Lobito Corridor.
Timeline
The Financial Times Africa Summit will occur next week in London.
Travel Outlook
The Lobito Corridor development, connecting Angola, the Democratic Republic of Congo, and Zambia, serves as a key example of how infrastructure financing currently contends with currency volatility. Addressing these risks is essential for the long-term feasibility of regional connectivity projects.
Investors and stakeholders looking toward the region should monitor upcoming discussions regarding local-currency financing models. These shifts may eventually lead to more stable business environments and improved infrastructure reliability for travelers and commercial interests alike.
The takeaway
Transitioning from short-term financial instruments toward long-term domestic investment is critical for African infrastructure autonomy. Leveraging local capital can shield projects from global market volatility and promote more sustainable regional economic growth.
Further reading
For broader context on economic trends across the region, see our Africa section.
Source note: This article includes information reported by Business Day.
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Should African nations prioritize domestic savings over international investment to fund their infrastructure projects?
