Africa’s place in the global investment landscape is again under scrutiny, not because conditions are calm and predictable, but precisely because they are not.
I agree with the sentiments expressed by Canadian Prime Minister Mark Carney at the World Economic Forum 2026 that the world has entered a period of rupture rather than gradual transition. I submit that Africa cannot afford to remain passive as global capital is reshuffled.
For decades, investors assessed opportunity country by country. Today, capital is being forced to think continent by continent and over far longer horizons.
Africa sits at the intersection of global trade tensions, shifting supply chains, and a powerful demographic wave. Despite these structural drivers, financial investors still tend to treat the continent primarily as a risk rather than as a growth story in the making.
There’s a sharp distinction between different types of investors. Consumer-facing companies already see Africa as an opportunity, and they are attracted by population growth and rising demand. Financial investors, particularly those lending to governments or allocating capital to equity markets, remain far more cautious.
While their understanding of African risk is improving, it lags the pace at which opportunity is developing. The central problem is the persistent tendency to treat Africa as a single, homogeneous market. This “single market hostage” approach ignores the reality that Africa is made up of multiple jurisdictions with vastly different risk profiles, regulatory frameworks and growth paths. For global investors struggling with complexity, it is easier to price Africa as one trade than engage with its nuances.
Trade wars, climate policy and supply chain realignments are reshaping alliances at speed.
The continent’s largest and most established markets must shoulder greater responsibility in changing this narrative. South Africa, Nigeria and Kenya should function as leading steers, helping to build depth and credibility in frontier markets. Without this leadership, global investors will default to familiar entry points such as the JSE, mistakenly treating them as proxies for the entire continent.
This responsibility is not purely altruistic because no market can thrive as an island. In a world of interconnected capital flows, strong neighbourhoods matter. Deepening and integrating regional markets attracts capital, builds liquidity, and strengthens resilience.
South Africa’s relationship with other African capital markets has been uneven. It is perceived as a competitor rather than a partner. But when South African institutions demonstrate a genuine commitment to long-term development, trust follows.
The global backdrop only heightens the urgency. Trade wars, climate policy, and supply chain realignments are reshaping alliances at speed. Africa risks being excluded from these decisions altogether, becoming “on the menu rather than at the table”, Carney’s words.
Despite this, Africa’s structural growth story remains compelling. Banking and financial infrastructure underpin economic activity and have shown marked improvements in governance. Telecommunications and mobile-driven digital services continue to leapfrog traditional development paths. Infrastructure, especially ports and logistics, is attracting substantial investment from global players who clearly see long-term value.
In this context, African asset managers carry responsibilities that extend far beyond delivering returns. By professionally managing savings, they build confidence, mobilise domestic capital, and create employment ecosystems. They also play a vital role in developing deep and liquid capital markets capable of attracting long-term investment.
Africa must take steps to change global perceptions. First, undertake robust financial reforms that ensure speed, precision, and credible oversight. Second, implement pension reforms that grow long-term savings rather than allowing capital leakage. Third, invest aggressively in financial literacy so citizens understand how to build and protect their wealth.
Diversification matters. Limited local opportunity sets make it risky to keep all capital in one country. A balanced approach, combining local exposure with meaningful offshore investment, is essential.
Despite the turbulence, I’m cautiously optimistic about Africa’s future as a financial destination. Periods of disruption create openings. As traditional investment destinations are being questioned, Africa has an opportunity to raise its hand and make a credible case. The challenge is whether the continent can move quickly enough to seize it.
• Msibi is head of asset management at Standard Bank Group and CEO of Stanlib Asset Management.
Business Times
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