President Adesina Flags $100bn Annual FDI Shortfall in Africa
President of the African Development Bank (AfDB) Group, Dr. Akinwumi Adesina, has cautioned that Africa faces an annual foreign direct investment (FDI) shortfall of about $100 billion, citing weak rule of law rankings, debt vulnerabilities, and predatory “vulture fund” litigation as key obstacles.
Speaking at the Kenya Law Society’s 2025 Annual Conference in Diani, south of Mombasa, Dr. Adesina told more than 1,200 lawyers, judges, and government officials that judicial independence, transparency, and governance reforms remain crucial to bridging the gap.
“When Africa stands for the rule of law, the world will stand with Africa,” he declared during his closing keynote address on the theme Public Finance, Governance, Justice and Development.
He explained that “vulture fund” practices — where investors buy sovereign debt at a discount and sue debtor nations for full repayment plus interest and fees — exploit fragile legal systems and exacerbate debt stress across the continent.
According to Dr. Adesina, evidence shows that foreign direct investment flows more readily to countries with political stability, democratic governance, transparency, and low levels of corruption. Other critical enablers, he said, include a strong and transparent judiciary, public accountability, efficient public service, competition policy, and protection of intellectual property rights.
“Justice is not a byproduct of development — it is the foundation of development,” he stated, urging universal access to justice through digitised courts, legal aid, and citizen-focused grievance mechanisms.
He further called on African nations to:
• Strengthen judicial independence and transparency to attract global capital.
• Reform natural resource laws to ensure communities benefit.
• Establish sovereign wealth funds to protect future generations.
• Build robust African arbitration systems for fair and local dispute resolution.
Dr. Adesina challenged Africa’s legal fraternity to become “guardians of promise and stewards of destiny” by upholding constitutional safeguards on public finance, championing ethics, and advancing environmental, social, and governance (ESG) principles.
The three-day conference brought together senior members of Kenya’s legal and governance community, including Chief Justice Martha Koome, Kenya Law Society President Faith Odhiambo, Mombasa Governor Abdulswamad Nassir, and AfDB’s East Africa Director General, Alex Mubiru.
Bank-led reforms showing impact
The AfDB President pointed to tangible outcomes from the Bank’s governance and justice support initiatives. In Rwanda and Côte d’Ivoire, AfDB-backed commercial court reforms have halved dispute resolution times, unlocking over $1 billion in investment. In Seychelles, constitutional reforms requiring parliamentary approval for sovereign borrowing have reduced the debt-to-GDP ratio from above 100% to below 55%. In Kenya, debt transparency and procurement reforms are enhancing parliamentary oversight and safeguarding public funds.
Known as Africa’s “Optimist-in-Chief,” Dr. Adesina urged the continent’s legal practitioners to turn governance into growth. “Justice and development are not parallel paths; they are converging tracks toward inclusive growth,” he said.
“Let us make a choice that history will record, and generations will remember,” he added. “As lawyers, justices and guardians of the law, I urge you to uphold the rule of law, to execute justice with fairness and righteousness.”
