New CFA Institute Report Urges Private Capital Solutions to Unlock Africa’s Capital Markets News Story:

A new report by CFA Institute, titled Capital Formation in Africa: A Case for Private Markets, highlights the urgent need to mobilise private capital to address structural investment gaps across sub-Saharan Africa. The study explores how private markets, especially private equity and private debt, can play a pivotal role in building efficient and integrated capital markets that support the region’s socioeconomic development.

The research identifies key barriers currently impeding capital formation and outlines targeted policy recommendations for regulators, governments, the investment industry, and international institutions active in Africa. Covering 11 markets, the report features localised insights from investment leaders in Botswana, Ethiopia, Kenya, Mauritius, Nigeria, South Africa, Uganda, West Africa (specifically Côte d’Ivoire and Senegal), Zambia, and Zimbabwe.

Dr. Phumzile Mlambo-Ngcuka, Former Deputy President of South Africa, writes in her foreword to the report, “The CFA Institute research illuminates the current state of Africa’s capital markets but also serves as a call for stakeholders to engage thoughtfully with the markets' evolving dynamics. It is my hope that this work will inspire policy reform and innovative solutions that navigate the complexities of capital formation with investor protection and strategic foresight. In doing so, we can shape the future of finance and drive the socioeconomic development of Africa.”

Ahmed Rashad Attout, Director of Financial Sector Development at the African Development Bank, adds, “At the African Development Bank, we are committed to building enduring partnerships with stakeholders who share our vision of a prosperous, inclusive, resilient, and integrated Africa. It is in that spirit that we welcome this important research from the CFA Institute. The publication provides a much-needed local perspective on capital market development in Africa. Its conclusions and recommendations provide a basis for advancing the development of the investment solutions needed to build the efficient, dynamic, and integrated capital markets that Africa needs to drive its development agenda.”

The report will be launched today in Abidjan at a panel discussion during the African Development Bank’s annual meeting. The session will be moderated by Olivier Fines, CFA, Head of Policy Research and Advocacy at CFA Institute. Fines remarks, “There is historically a strong correlation in various parts of the world between capital market development and socioeconomic progress. This research seeks to consider the main barriers to capital formation in sub-Saharan Africa and whether private markets, particularly private equity and private debt, can be a catalyst for stronger capital market development in the region. The authors believe private capital is particularly suited to the region’s current structural investment needs, including infrastructure and small- and medium-sized enterprise funding. The research also considers the potential for mixed finance projects and offers enduring lessons for sub-Saharan Africa based on the successes of the Asian tiger economies.”

Key Recommendations Include:

• For Regulators and Policymakers: Offer clarity on private asset regulation, provide transparent legislative roadmaps, and strengthen corporate governance frameworks.

• For Governments: Use public-private partnerships to expand financial infrastructure, enhance investor education, and establish endowment-like funds for sector-specific growth.

• For Institutional Investors: Bridge skills gaps, support SME funding, and engage local investors as long-term anchors for capital markets.

The report presents a compelling case for collaborative efforts to unlock Africa’s full capital market potential by leveraging the strength and flexibility of private finance.