Reflection on the LSE AFRICA SUMMIT 2025. Economic Resilience: Financing Africa's Future
On the weekend of 29-30 March 2025, the London School of Economics (LSE) hosted its 11th annual Africa Summit. This year's theme, "Securing Africa’s Future: Promoting Resilience in a Divided World," highlighted the need for collaboration and innovative approaches to tackle Africa's development challenges. This student-led conference brought together leading policymakers, academics, and practitioners for engaging discussions on resilience and sovereignty. Among the many insightful sessions, the panel titled "Economic Resilience: Financing Africa's Future" was particularly compelling for its focus on actionable strategies to advance Africa’s financial independence amidst global challenges.
Moderated with skill and insight by Professor Gibril Faal, the panel featured a distinguished lineup. Dr. Vera Songwe, Chair and Founder of the Liquidity and Sustainability Facility, highlighted the need for structural financial reform and innovative resource mobilization. Professor Kingsley Moghalu, Inaugural President of the African School of Governance, emphasized visionary leadership as the cornerstone of transformation. Mayowa Kuyoro, McKinsey Partner in Nigeria, advocated for blended finance models and sustainable infrastructure investments. Finally, Paul Bwiso, CEO of the Uganda Securities Exchange, emphasized the role of technology in democratizing access to finance. Together, their insights provided a comprehensive and solution-oriented approach to resilient finance for Africa.
The discussions made it clear that Africa’s financial challenges, including unsustainable debt servicing and limited capital mobilization, demand immediate attention.
Mobilizing Local Resources for Financial Independence
Dr. Songwe’s emphasis on revenue mobilization resonated with me not just as an economic challenge but as a fundamental question of sovereignty and self-reliance for African nations. On average, African countries collect only 20% of their GDP as government revenue, far below the global benchmark of 34%. The need for reform is evident. By strengthening domestic revenue systems and investing in revenue-generating institutions, African nations can take meaningful steps toward financial independence. Nigeria’s success in diversifying its revenue beyond oil offers a compelling example of how targeted and innovative reforms can deliver lasting progress.
Debt Management and Negotiation Strategies
Professor Moghalu’s perspective on Africa’s debt burdens was equally compelling. He highlighted how exaggerated risk premiums inflate borrowing costs for African nations, emphasizing the need for proactive debt renegotiation and reduced reliance on private borrowing. While structural inequalities in the global financial system play a role, Moghalu’s call for African agency and leadership accountability resonated deeply with me. Sustainable transformation begins with leaders taking responsibility for sound financial governance.
Technology: A Game-Changer for Financial Inclusion
Paul Bwiso highlighted how technology is transforming Africa’s financial sector, showcasing Uganda’s success in leveraging mobile platforms. In just six weeks, over 78,000 retail investors were onboarded through these platforms—a striking example of how digital innovation can democratize access to finance. By broadening participation and empowering marginalized communities to engage in capital markets, technology is paving the way for greater economic inclusion. I strongly believe that scaling such digital solutions across the continent holds the key to unlocking Africa’s untapped economic potential.
Policies to Build Resilience
Drawing from the panel’s insights, my take is that Africa’s financial resilience relies on three interlinked strategies. First, governments must modernize tax systems, improve transparency, and invest in revenue-generating institutions like sovereign wealth funds and national development banks to sustain domestic capital. Second, diaspora contributions, with over $100 billion in annual remittances, represent untapped potential that could be transformed into productive investments through diaspora bonds, infrastructure funds, and digital platforms. Finally, infrastructure development is crucial. Strategic investments in energy, transportation, and digital connectivity—supported by blended finance models—are essential to meeting Africa’s long-term development needs and fostering resilience.
Reflections on Africa’s Financial Future
This panel reminded us that resilience is not just a buzzword—it is a call to action. Africa’s financial resilience depends on nurturing local capacities, driving innovation, and strengthening governance. The solutions shared during the summit highlighted the continent’s immense potential to take charge of its financial destiny.
As I reflect on these discussions, I am inspired by the optimism shared by all participants. The path to economic sovereignty is well within Africa’s reach. Achieving it will require bold leadership, a shared vision, and unwavering commitment to turning ideas into meaningful action.
By Maureen Manyama
