Africa Charts Bold 36-Month Plan to Tackle High Cost of Capital and Reshape Global Financial Equity

African finance ministers, development experts, and private sector leaders have proposed an ambitious action plan aimed at reducing the continent’s soaring cost of capital within the next 12 to 36 months.

The announcement was made at the Financing Africa Forward Summit held in Johannesburg and co-hosted by Standard Bank and Africa Practice, in partnership with the ONE Campaign and the African Peer Review Mechanism (APRM).

According to a statement from Africa Practice, the summit brought together key stakeholders united by the urgent need to reform Africa’s financial landscape. Participants highlighted that African countries pay up to 500 per cent more for capital market loans than they would for financing from multilateral development banks. With external debt service projected to reach $89 billion in 2024, more capital is leaving African economies in repayments than is being received through new investments or aid.

To address this, summit participants endorsed a strategic four-pillar plan designed to be led by African institutions and tailored to the continent’s priorities.

The pillars include:

1. Reforming the global financial system to give African nations greater influence in shaping fairer international rules.
2. Strengthening government capacity to reduce reliance on debt and encourage smarter public investment.
3. Improving data quality and African-led research to support more accurate risk assessment and policy development.
4. Changing global perceptions of Africa through evidence-based campaigns that reframe the continent as a place of opportunity, not just risk.

Samaila Zubairu, President and CEO of the Africa Finance Corporation, noted that African nations face inflated borrowing costs due to skewed risk assessments.

“These default rates are really, really exaggerated. The prejudice premium Africa has paid is $75 billion annually. That’s a lot of money,” he said.

Ndidi Nwuneli, CEO of the ONE Campaign, stressed the vital role of fair financing in the continent’s future.

“Affordable capital is a lifeline for Africa, not a luxury. It’s time the cost of capital reflects our potential, not outdated risk narratives,” she said.

Sim Tshabalala, CEO of Standard Bank Group, described the initiative as transformative.

“This is not just about building roads and bridges; it is about building opportunity, resilience, and prosperity.”

The call for reform was echoed by Dr. Misheck Mutize, APRM’s lead expert on credit ratings, who urged global financial institutions to take Africa’s proposals seriously.

“If they remain fixated on short-term benefits and outdated models, they may soon find themselves irrelevant,” he said.

Marcus Courage, CEO of Africa Practice, likened the current global financial environment to a rigged system.

“Some nations get harnesses for the climb, while African countries must scale the mountain with weighted vests. That must change,” he said.

The summit concluded with a renewed commitment to implementing the proposed reforms through a coalition of African-led institutions. The first phases of the plan are expected to roll out within the next year, with full implementation targeted by 2028.

As the cost of capital continues to hamper growth and deepen inequality, African leaders made it clear: the time for financial justice and self-determined development is now.