On October 16, 2025, African leaders and heads of financial institutions gathered in Washington to explore innovative financing for the continent’s development. Participants agreed that it is essential for Africa to trade more rather than wait for aid. The focus is on massive investment in infrastructure with the support of financial institutions and the private sector.
Africa’s development has long been hampered by its reliance on aid and external borrowing. In 2023, the continent received approximately $61 billion in official development assistance. In this context, on October 16, 2025, African leaders and financial institution heads met in Washington. Participants emphasized the need for a paradigm shift.
“We can no longer depend on aid. We spoke about trade instead of aid. We now place great importance on investment and trade. We will not develop Africa through aid. We will not develop Africa by borrowing money for routine expenses. We will develop Africa through investment in all areas of our development.”
For the participants, it is imperative that development banks and the private sector work to facilitate the establishment of infrastructure that will enable trade. Thus, institutions like Afreximbank play an essential role in transforming these opportunities into real development projects. In 2024, the pan-African bank approved $22 billion, disbursed $18.7 billion, and declared a net profit of $973.5 million, demonstrating its growing impact on the estimated annual financing gap of $800 billion in Africa. African multilateral banks offer guarantees and frameworks that encourage both foreign and domestic investment.
“One of the mechanisms established by African states to encourage foreign investment on the continent lies in the institutions they have created. African multilateral financial institutions offer most of the guarantees sought by foreign investors. This topic was also extensively debated, as these institutions have the capacity to attract these investments to their territories.”
By structuring trade finance, supporting value chain development, and investing in regional initiatives such as the Pan-African Payment and Settlement System (PAPSS) and the African Continental Free Trade Area (AfCFTA), participants demonstrated how the continent can finance its own transformation, turning strategic ambition into tangible development results.