Africa: IMF Calls for Greater Data Transparency, Productivity to Boost Investment in Africa

The International Monetary Fund (IMF) has called on Nigeria and other African countries to strengthen macroeconomic stability, improve productivity and enhance data transparency to attract greater levels of domestic and foreign investment needed to drive sustainable economic growth.

The call was made during a panel session at the ongoing ASIS 2026 Summit in Lagos, where policymakers and investment leaders examined strategies for mobilising capital to support Africa’s development agenda.

Speaking at the event, the IMF’s Alternate Executive Director for Nigeria, Afolabi Olowookere, observed that Africa continues to receive a disproportionately small share of global investment despite its significant economic potential.

According to him, although the continent accounts for nearly 20 per cent of the world’s population, it attracts less than five per cent of global foreign investment, largely due to structural constraints, relatively low economic output and investor concerns about economic stability.

“If Africa is to attract more capital, countries must focus on improving productivity, sustaining stronger economic growth and maintaining a more stable macroeconomic environment,” Olowookere said.

Data Transparency Key to Investor Confidence

Olowookere also emphasised the importance of improving the quality, availability and transparency of economic data across the continent.

He noted that as artificial intelligence increasingly influences investment analysis and decision-making, investors require reliable and accessible data to evaluate opportunities and assess risks.

“There is substantial global capital searching for investment opportunities. African economies must position themselves as attractive destinations while also mobilising more domestic capital, which can in turn attract additional international investment,” he said.

Stronger Domestic Revenue Mobilisation Needed

Addressing the issue of development financing, the IMF official urged African governments to strengthen domestic revenue mobilisation to reduce dependence on borrowing and improve fiscal sustainability.

He noted that many countries on the continent currently generate less than 10 per cent of Gross Domestic Product (GDP) in government revenue, a level he described as insufficient to finance essential public services and infrastructure.

According to Olowookere, increasing revenue collection to above 15 per cent of GDP would provide governments with greater fiscal capacity to invest in healthcare, education and social protection while creating more room for private sector financing.

He added that achieving Africa’s development objectives would require coordinated contributions from governments, domestic investors, international financial institutions and philanthropic organisations.

Experts Highlight Investment Barriers

Other speakers at the summit identified several structural issues limiting investment flows into Africa.

Bowofade Elegbede, Associate Director for Investing in West Africa at Acumen Fund, described the continent’s investment challenge as both a supply and demand issue.

He explained that while investment capital exists globally, many African businesses have yet to meet the governance, reporting and investment readiness standards required by institutional investors.

Governance and Bankable Projects Remain Critical

Also speaking, Pius Aniedo, Head of the Nigeria Infrastructure Fund (NIF), identified exchange rate volatility, weak contract enforcement and inadequate corporate governance as major factors discouraging investors.

He stressed the need for stronger legal protections, improved governance frameworks and the development of more bankable infrastructure projects supported by project preparation facilities and investment guarantee mechanisms.

Philanthropic Capital Can Catalyse Investment

Vice President for Africa at Rockefeller Philanthropy Advisors, Henrietta Bankole-Olushina, challenged the perception that Africa lacks capital, arguing that the continent should focus on deploying its existing resources more effectively.

She explained that philanthropic funding can play a catalytic role by supporting early-stage projects, generating credible data and reducing investment risks before attracting larger pools of private capital.

Participants at the summit agreed that improving macroeconomic stability, strengthening institutions, enhancing transparency and mobilising domestic resources will be essential for positioning Africa as a more competitive destination for global investment while supporting long-term economic development and resilience.