Financial Afrik – Issue 130 (May 15 – June 14, 2026)

Executive Summary

This edition of Financial Afrik explores a major transformation underway in African finance: the gradual shift from passive savings to productive investment. Across the continent, households and institutions are increasingly reallocating capital from traditional bank deposits toward mutual funds, life insurance products, pension schemes, and capital markets. At the same time, Africa is seeking to build a new financial architecture capable of mobilizing its own savings to finance its development ambitions. 

Key Highlights

Africa Wants to Finance Its Own Development

The Annual Meetings of the African Development Bank (AfDB) in Brazzaville marked a strategic turning point. Under the leadership of AfDB President Sidi Ould Tah, Africa is promoting the New African Financial Architecture for Development (NAFAD), aimed at mobilizing nearly $4 trillion of African savings to finance African priorities rather than external markets. The initiative seeks to reduce dependence on foreign capital, lower borrowing costs, and strengthen regional financial markets. 

Mutual Funds, Life Insurance and Investment Funds: The End of Dormant Savings

A special report examines how African savers are becoming investors. Driven by inflation and the search for higher returns, savings are increasingly flowing into:

• Mutual funds and UCITS;
• Life insurance and pension products;
• Bancassurance platforms combining banking and insurance services.

In UEMOA, some equity funds generated returns exceeding 30%, significantly outperforming traditional savings products. The report argues that Africa is witnessing a structural transformation of its savings culture. 

Taxation and the Growth of Collective Investment

The magazine compares tax regimes governing UCITS across UEMOA, CEMAC and Morocco. While most systems apply the principle of taxing investors rather than funds themselves, Morocco stands out for offering greater tax clarity and predictability, contributing to deeper capital markets. 

The Rise of Bancassurance

Bancassurance is becoming the dominant financial distribution model across many African markets. More than half of life insurance products in several countries are now distributed through banking networks. This convergence between banks, insurers and asset managers is helping mobilize long-term capital for economic development. 

Asset Management: Contrasting Regional Dynamics

• Morocco now manages more than $80 billion through collective investment schemes, confirming the depth and sophistication of its financial market.
• In CEMAC, the industry remains highly concentrated, with Harvest Asset Management controlling over one-third of total assets under management.
• In UEMOA, the sector is growing rapidly but still suffers from a lack of transparency, making it difficult to accurately assess the balance of power among leading asset managers. 

Benin’s “Unspoken Doctrine”

The election of Romuald Wadagni with over 94% of the vote is presented as more than a political transition. The article argues that Benin is consolidating a model based on fiscal discipline, economic reform, and state continuity, extending the legacy of President Patrice Talon. 

ECOWAS Bank for Investment and Development (EBID)

The EBID unveiled its new GRO 2026–2030 Strategy (Growth, Resilience, Optimisation) and committed to significantly increasing investments across West Africa over the next five years. Infrastructure, agriculture, energy, digital transformation, climate resilience and private-sector financing are identified as priority sectors. 

Interview: Baba Malick Ba

The newly appointed Regional Director of the EBID office in Abidjan explains how the institution intends to deepen its impact across Côte d’Ivoire, Senegal, Guinea, Burkina Faso, Cape Verde and The Gambia. He emphasizes public-private partnerships, SME financing, infrastructure development and greater mobilization of private capital. 

Editorial: Africa’s Fragmented Capital Markets

The editorial argues that Africa’s more than eighteen stock exchanges remain too fragmented to efficiently channel savings into productive investment. Despite representing nearly 18% of the world’s population, Africa accounts for less than 2% of global market capitalization. Greater integration of financial markets is presented as essential for attracting capital and financing development. 

Bottom Line

Issue 130 presents a central thesis: Africa does not lack savings; it lacks the financial architecture needed to transform those savings into large-scale investment. The continent’s next development chapter will depend less on external aid and more on its ability to mobilize domestic capital through stronger institutions, deeper markets, and better integration.