Africa’s leadership of the G20 and its business platform, the B20, marks a turning point in global economic discourse. It signals the continent’s rising influence in shaping investment frameworks and directing capital toward sustainable development priorities.

 

For the private sector, this is an opportunity to contribute to global conversations, informed by the realities we navigate daily. Climate finance, infrastructure development and public debt are part of the operating environment that defines our ability to grow and deliver impact.

Kenya’s infrastructure financing gap is one example. The World Bank estimates that the country requires nearly $4 billion annually to meet its infrastructure needs.

Public finances alone cannot meet this, creating a financing deficit of approximately $2.1 billion per year. What’s needed are financing models that can attract long-term capital and bring together public, private and development institutions.

Private capital has a role to play, but this requires confidence in how projects are identified, structured and de-risked. Transparency, public value and accountability must be built into the investment process from the start, not addressed as an afterthought.

In financial services, we continue to see that the bottleneck is not always capital, it is project readiness. Investors seek clarity on permitting processes, cost structures, risk-sharing mechanisms and revenue models. These issues continue to prevent viable projects from reaching financial close.

Environmental, social and governance (ESG) considerations are now embedded in investment decisions. These are no longer treated as compliance checklists; they are used to assess long-term risk.

For banks, this shift means providing more technical support during project design, improving due diligence and aligning financing with sustainability standards from the outset.

Domestic capital is also underutilised. Kenya’s pension sector, for instance, has over Ksh2.25 trillion in assets under management. Less than 2 percent of this is invested in infrastructure, despite a regulatory allowance of up to 10 percent.

This is not due to lack of interest, but lack of suitable vehicles. The solution lies in better structuring and collaboration among fund managers, regulators and transaction advisers.

To meet the financing needs of the Sustainable Development Goals by 2030, Africa must strengthen its investment infrastructure, particularly in energy, housing, water, health and transport.

This includes addressing gaps in early-stage project preparation, a key reason why many high-potential ideas fail to attract funding.

Development finance institutions can support this by coming in earlier, providing technical assistance, feasibility support and risk analysis, rather than waiting for projects to be fully structured. The more we frontload this expertise, the more investable the pipeline becomes.

There has been progress though. The Central Bank of Kenya and the Capital Markets Authority are advancing frameworks for sustainable finance, including guidance on ESG disclosures, climate risk, and green instruments.

What remains is to translate policy into investable opportunities through closer coordination among regulators, ministries and market actors.

Scale must also be part of the conversation. The challenge is to build connected investment ecosystems that support clean energy, mobility, logistics and manufacturing. Smaller enterprises along the value chain must back large anchor projects to ensure resilience and broader participation.

Success depends on reliable public planning and stronger coordination across institutions. Policy clarity, timely approvals and consistent enforcement remain essential. Development finance must also evolve, focusing more on risk absorption and first-loss capital than concessional pricing alone.

Recent discussions at the Africa Debate made one point clear: whether we are talking about energy, infrastructure, or industry, investors look for structure, risk clarity, and a dependable pathway to completion. This is the architecture we must create.

For African leaders, the G20 and B20 offer a chance to engage constructively, bringing capital, expertise and clear priorities to the table.

This is one way we can support national and regional growth, while ensuring we play an active role in shaping global economic priorities and commitments.

Abdi Mohamed is CEO & Managing Director of Absa Bank Kenya Plc and Chair of UN Global Compact-Kenya.

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