Africa’s long-standing quest to reshape its place in the global financial system may be entering a new phase. Rather than waiting for reforms to international lending institutions or hoping for greater inflows of foreign aid, African leaders are increasingly turning their attention inward—looking to mobilise the continent’s own capital, strengthen its financial institutions and finance development on its own terms.
That vision was at the heart of discussions during the 26th Annual General Meeting of the African Trade & Investment Development Insurance (ATIDI), held in Nairobi, Kenya, from 30 June to 3 July under the theme “Empowering Africa: Risk Managed, Growth Unlocked.” While the meeting marked ATIDI’s 25th anniversary, the conversations extended far beyond the institution itself, focusing on a broader shift towards African financial sovereignty.
Addressing delegates during the anniversary celebrations at State House, Kenyan President William Ruto argued that although Africa has consistently called for a fairer global financial architecture, the continent cannot afford to delay its own transformation while waiting for change elsewhere.
Instead, he urged African countries to build stronger continental institutions capable of reducing borrowing costs, mobilising domestic savings and providing the confidence investors need to finance Africa’s future.
The timing of that message is significant.
Africa is estimated to hold almost US$4 trillion in long-term domestic savings through pension funds, insurance assets and central bank reserves. Yet much of that money continues to be invested outside the continent, even as African countries face an annual development financing gap exceeding US$400 billion. At the same time, governments and businesses across Africa continue to borrow internationally at some of the highest financing costs in the world, largely because of persistent perceptions of elevated investment risk.
For many policymakers, the challenge is therefore no longer simply about raising more money. It is about building institutions capable of transforming African savings into African investment.
That ambition underpins the newly launched New African Financial Architecture for Development (NAFAD), an initiative introduced earlier this year by African Development Bank Group President Dr Sidi Ould Tah. The framework seeks to bring together the continent’s leading multilateral financial institutions to strengthen risk-sharing mechanisms, lower the cost of capital and unlock significantly more domestic and international investment for African economies.
At the centre of that architecture is the Alliance of African Multilateral Financial Institutions (AAMFI), bringing together organisations including the African Development Bank, Afreximbank, Africa Finance Corporation, ATIDI and other continental institutions.
In a move that underscores Kenya’s ambition to become a leading financial hub for Africa, President Ruto announced that the Government of Kenya has approved the establishment of the alliance’s Secretariat in Nairobi. Beyond its symbolic value, hosting the Secretariat positions Kenya at the centre of efforts to coordinate Africa’s evolving development finance ecosystem.
President Ruto also described ATIDI as one of the alliance’s most strategic institutions, noting that investment ultimately follows confidence, and confidence depends on credible mechanisms for managing risk.
He called for ATIDI’s capital base to be progressively increased to US$2 billion, arguing that every dollar invested in Africa’s guarantee architecture has the potential to mobilise many times more private investment into productive sectors of the economy.
He further invited African governments to support what he termed the Nairobi Capital Compact on African Economic Sovereignty, built around five broad commitments: recapitalising ATIDI, strengthening African multilateral financial institutions, mobilising domestic savings, expanding guarantee and risk-sharing capacity, and building globally competitive African development finance institutions.
Kenya also demonstrated its commitment through concrete financial pledges.
Subject to the country’s domestic approval processes, the government intends to increase its shareholding in ATIDI from US$25 million to US$65 million. President Ruto also presented the organisation with the title deed for land that will host ATIDI’s permanent headquarters in Nairobi, further cementing the country’s long-term partnership with the institution.
For Kenya, that relationship has already delivered tangible results. ATIDI-backed guarantees have helped unlock more than US$7 billion in investments across sectors including energy, manufacturing, transport, agriculture and trade.
As the institution celebrated its silver jubilee, ATIDI Chief Executive Officer Manuel Moses reflected on how the organisation has evolved since its establishment in 2001.
Created by African governments to address trade and investment risks that discouraged capital flows into the continent, ATIDI has since supported more than US$93 billion in trade and investment across Africa through political risk insurance, credit insurance and surety products that help reduce investor uncertainty.
Its shareholder base has expanded from just seven founding member states to 24 African countries, alongside 13 institutional shareholders and one non-African member state. Throughout that period, ATIDI has consistently maintained investment-grade credit ratings from major international rating agencies—an achievement that has strengthened confidence among global investors and lenders.
Moses argued that the institution’s success demonstrates that African institutions can meet international standards while developing financial solutions specifically designed for African markets.
He also highlighted the importance of preserving ATIDI’s Preferred Creditor Status (PCS), a framework under which member states continue to prioritise their financial obligations to the institution even during periods of economic distress. That protection underpins investor confidence in ATIDI’s guarantees and remains fundamental to the organisation’s ability to attract capital at competitive rates.
The institution’s latest financial results suggest continued momentum.
During 2025, ATIDI increased its total exposure from US$8.9 billion to US$9.2 billion. Annual profit rose by 20 percent to US$71.4 million, while total assets surpassed US$1.06 billion and shareholder equity increased to US$883 million. Despite ongoing global economic uncertainty, the institution recorded growth across insurance revenue, investment income and overall capital strength.
Professor Kelly Mua Kingsly, Chairman of the ATIDI Board of Directors, argued that confidence remains Africa’s most valuable economic asset.
“If capital is the engine of development, confidence is its fuel,” he observed, capturing one of the meeting’s central themes. Africa’s abundant natural resources and rapidly growing population may attract international attention, he suggested, but investment only materialises when institutions exist to manage risk and provide certainty.
That message resonated strongly during the Leaders’ Panel, where policymakers examined how Africa can build a more resilient and self-sustaining development finance system amid changing global capital flows, rising debt burdens and growing infrastructure demands.
Dr Sidi Ould Tah used the platform to call for stronger support for African financial institutions, arguing that the continent continues to suffer from the persistent mispricing of African risk rather than a shortage of investment opportunities.
He announced that the African Development Bank Group has increased its equity participation in ATIDI five-fold, making it the institution’s largest institutional shareholder. The Bank also intends to help additional African countries join ATIDI by supporting their capital subscriptions, broadening the institution’s reach across the continent.
For the African Development Bank, this reflects a wider strategic shift from acting primarily as a project financier towards becoming a catalyst that mobilises substantially larger volumes of private investment through guarantees, blended finance and partnerships with institutions such as ATIDI.
Kenya’s Deputy President Professor Kithure Kindiki reinforced that argument, noting that constrained public finances mean governments alone cannot deliver Africa’s development ambitions. Private investment, he said, will be indispensable if the continent is to finance modern infrastructure, industrialisation and long-term economic transformation.
The meeting also looked beyond policy discussions.
Delegates were presented with investment opportunities in Kenya and Cameroon across renewable energy, agriculture, transport and water infrastructure. Curated business-to-business and business-to-government engagements connected investors with governments and project developers, reinforcing the practical objective of translating financial dialogue into commercially viable investments.
For Africa, the significance of the Nairobi meeting extends beyond the announcements made over four days.
As implementation of the African Continental Free Trade Area gathers pace, the continent will require significantly greater investment in cross-border infrastructure, manufacturing, logistics, digital connectivity and energy systems. Mobilising that capital will depend not only on attracting international investors but also on retaining and deploying a greater share of Africa’s own savings.
Institutions such as ATIDI, working alongside the African Development Bank, Afreximbank, Africa Finance Corporation and other regional financial partners, are increasingly positioning themselves as the backbone of that strategy.
Whether initiatives such as NAFAD ultimately succeed will depend on consistent political commitment, sound governance, regulatory certainty and a steady pipeline of bankable projects. Financial institutions alone cannot transform Africa’s economies, but they can create the confidence that allows investment to flow where it is needed most.
What emerged from Nairobi is a growing consensus that Africa’s economic future will not be secured simply by demanding a fairer place in the global financial system. It will also be determined by how effectively the continent builds institutions capable of financing its own ambitions.
If that momentum continues, the conversations held in Nairobi may one day be remembered not simply as the celebration of ATIDI’s first 25 years, but as another important milestone in Africa’s journey towards greater financial sovereignty.
