Africa is losing out on nearly $100 billion in foreign direct investment (FDI) annually due to weak rule of law, governance gaps, and predatory debt litigation, the former President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has warned.
Speaking at the Kenya Law Society’s 2025 Annual Conference in Diani, Dr. Adesina told over 1,200 lawyers, judges, and policymakers that Africa’s ability to attract capital depends less on resource wealth and more on the strength of its legal and governance institutions.
“When Africa stands for the rule of law, the world will stand with Africa,” he declared in a rousing keynote address on Public Finance, Governance, Justice and Development.
He described so-called “vulture fund” practices in which investors buy distressed sovereign debt cheaply and sue for full repayment plus interest as a growing threat to debt sustainability. “They exploit fragile legal systems and worsen the debt stress of our nations,” Adesina cautioned.
The AfDB Former President stressed that evidence is clear, FDI flows “more readily to countries with political stability, democratic governance, transparency, and low levels of corruption.” Key enablers, he said, include judicial independence, accountability, efficient public services, competition policy, and protection of intellectual property rights.
“Justice is not a byproduct of development it is the foundation of development,” he told the gathering, urging African governments to digitise courts, expand legal aid, and make grievance mechanisms more citizen-focused.
Adesina also outlined structural reforms for sustainable growth, calling on governments to;
Strengthen judicial independence and transparency.
Reform natural resource laws to ensure community benefits.
Establish sovereign wealth funds to safeguard future generations.
Build African arbitration systems for fair and local dispute resolution.
Challenging Africa’s legal fraternity, he urged them to become “guardians of promise and stewards of destiny” by upholding constitutional safeguards on public finance and advancing environmental, social and governance (ESG) standards.
The three-day event drew key figures in Kenya’s legal and governance community, including Chief Justice Martha Koome, Law Society President Faith Odhiambo, Mombasa Governor Abdulswamad Nassir, and AfDB East Africa Director General Alex Mubiru.
Adesina pointed to early successes of AfDB-backed reforms. In Rwanda and Côte d’Ivoire, commercial court upgrades have halved dispute resolution times, unlocking more than $1 billion in new investments. In Seychelles, a constitutional requirement for parliamentary approval of sovereign borrowing has helped cut the debt-to-GDP ratio from over 100% to below 55%. In Kenya, debt transparency and procurement reforms are strengthening oversight and protecting public funds.
Known as Africa’s “Optimist-in-Chief,” Adesina left delegates with a challenge. “Justice and development are not parallel paths; they are converging tracks toward inclusive growth. Let us make a choice that history will record, and generations will remember.”
