Building alliances: Why African countries must invest in each other

Africa, the world’s second most populated continent, according to World Map, with approximately 1.2 billion people, is the largest recipient of international multilateral aid and support from the IMF, UN and World Bank.

For years, Africa’s development has been headlined by foreign direct investments, grants and support from international bodies but not so much by Africans themselves.

For a continent booming with minerals, resources and human capital, it almost looks like Africa is fully dependent on external support in order to operate. According to a report released on October 2025, by the UN Trade and Development, Africa received $28 billion(Sh36.3 trillion) in the first half of 2025, this being a 42 per cent drop from the previous year.

With such a decline on capital, should Africa expect stalling of projects that are aimed at achieving Sustainable Development Goals(SDGs) or expect employment lay-offs, again.

It’s time Africa changed the narrative and started investing in itself. Africa has all the possibilities of becoming a superpower, if only African countries can build investment alliances and form regional collaborations that drive capital flow into homegrown solutions and innovations that cater to the challenges faced by African countries for the benefit of Africa.

The move from dependency to interdependence is one that would require a lot of meaningful intra-African investment strategies that focus on local industries and strengthening regional economies.

There are millions of African owned businesses in Africa, spanning from Micro, Small and Medium Enterprises (MSMEs) to billion dollar companies, which eventually all work together to build each other. No single business can stand alone and survive without the other especially in these tough economic and politically unstable times.

By coming up with the right business strategy and upholding coordinated regional policies, African investors can mobilise revenue in order to face the challenges that hinder development such as paying off debts and investing in technology and innovation.

Financial institutions are a corner stone to Africa being inter-dependent. Banks, pension funds and sovereign wealth funds are packed with unutilised capital that could generate massive development in Africa. If governments could come together to blend financial structures in their countries, promoting cross-boarder investment with secure and attractive financial terms, Africa could generate the change it wants.

Backed-up by policy makers and competent finance professionals who advise and direct on investments, Africa could detach itself from external funding, inflation and debt.

Building alliances means shifting the views of investors and entrepreneurs to seeing their competitors not as challengers but as collaborators.

Investing in structured partnerships builds shared values.

Working together on a regional scale broadens businesses, innovations and pools together more finances. Forums that bring together investors and business leaders are important in ensuring Africans invest in Africa.

The African Investment Conference 2025, that’s powered by Certified Financial Analyst(CFA) Institute and hosted by leading CFA Societies across Africa, is one such platform that provides a space where investors, finance professionals, policy makers and business leaders convene to deliberate on how to unlock the investment potential in Africa.

Intra-African investment will increase economies of scale, provide access to less expensive raw materials and create regional value chains, hence expanding the market access and promoting economic growth.

For smaller countries, regional investment will offer an opportunity to setting up manufacturing hubs that expand their economies beyond exports of raw materials. Investing in one another offers a cautious defence against the risk of relying solely on one external partner for development.

With 54 different tax and regulatory regimes, streamlined regional cooperation will be essential in attracting and retaining investors.

Intra-African investment and partnerships with local businesses facilitate the transfer of competences, technical know-how, and management experience within the continent.

Africa must start financing its own destiny if it wants to take control of it.

The continent’s future cannot be determined by the goodwill or geopolitical objectives of others. Creating partnerships rather than dependencies is more than just a business tactic; it’s a statement of confidence and resilience. Africa’s future will not be imported, but will be invested in by Africans.

The writer is the President of CFA Society East Africa