African Development Bank (AfDB) President, Dr. Akinwumi A. Adesina, has called on African nations to strengthen governance, enforce transparency in public finance, and reform judicial systems to attract the levels of investment needed to bridge the continent’s $100 billion annual foreign direct investment (FDI) financing gap.
Delivering the keynote address at the Kenya Law Society’s 2025 Annual Conference in Nairobi, Dr. Adesina stressed that “the rule of law, sanctity of contracts, and judicial independence are as critical to investment inflows as political stability or natural resources.”
He noted that Africa’s abundance of oil, gas, and minerals had not automatically translated into prosperity due to weak governance and poor accountability in resource management. Citing Norway’s $1.9 trillion sovereign wealth fund as a model, he urged African countries to adopt transparent natural resource laws, invest revenues in human capital and infrastructure, and build sovereign wealth funds to secure long-term prosperity.
Tackling Debt and the Threat of “Vulture Funds”
Dr. Adesina also raised alarm over Africa’s rising public debt, now exceeding $1.3 trillion, with increasing exposure to commercial creditors. He warned against the legal maneuvers of so-called “vulture funds” that exploit loopholes to sue nations for massive debt repayments.
He urged African judiciaries to safeguard national assets from predatory claims and advocated for greater use of African arbitration systems. “Investors choose foreign jurisdictions because they trust their independence. African courts must rise to the challenge and instill the same confidence,” he said.
The AfDB, he revealed, has helped over 50 African nations renegotiate contracts and avert more than $4 billion in potential losses through its Africa Legal Support Facility.
Commercial Courts Driving Investment
Highlighting the business impact of judicial reforms, Dr. Adesina pointed to AfDB-backed commercial court modernization in Rwanda, Côte d’Ivoire, Ghana, and Malawi, which cut dispute resolution times and unlocked billions in FDI.
“In Rwanda, reducing dispute resolution time from 500 to 230 days attracted $2 billion in foreign investment. Ghana’s restructuring of commercial courts improved contract enforcement rankings and business confidence,” he said.
Justice, Governance, and Development
Beyond economics, the AfDB President tied public finance reforms to justice and inclusive growth. He reaffirmed the Bank’s zero-tolerance policy on corruption, stressing that “every dollar must deliver schools, hospitals, infrastructure, or jobs.”
He also underscored fair compensation in infrastructure projects, citing AfDB-backed cases in Kenya, Uganda, and Côte d’Ivoire where displaced communities, including those without formal land titles, received full compensation and livelihood support.
Call to Action for Africa
In a passionate appeal, Dr. Adesina urged Africa’s legal and judicial communities to safeguard constitutionalism, strengthen oversight of public debt, and ensure natural resource wealth benefits citizens rather than elites.
“There is no such thing as a natural resource curse. What exists is a governance curse,” he said. “When Africa stands for the rule of law, the world will stand with Africa.”
The AfDB leader concluded by calling for a future where Africa’s courts, parliaments, and financial institutions serve as guardians of public trust, attracting investment, driving justice, and delivering prosperity.
