Africa’s DFI paradox: 20% of global DFIs, yet only 1.9% of assets

Despite comprising 20% of global Development Finance Institutions (DFIs), Africa holds just 1.9% of assets, underscoring the need for capacity building through regional technical assistance and project preparation facilities.

This is according to Ric Amansure, Senior Researcher at the Centre for Sustainability Transitions, University of Stellenbosch.

Amansure stepped into the ESI Africa Studio at Enlit Africa 2025 to explain the difference between a just transition—emphasising social equity and justice—and a sustainable transition, which ensures long-term viability. 

Watch him as he highlights the critical role that DFIs play in Africa’s climate and broader development goals, encompassing agriculture, mining, technology, education and healthcare.

Touching on what DFIs are doing to help smaller African countries access climate funding, he explains that there are a number of approaches that they are using. 

“One is to have regional capacity building and technical assistance. One of the issues with regard to PDBs or even development finance institutions is their lack of capacity to have what are called bankable projects and to produce bankable projects.

“So it’s the capacity in terms of HR, but also capacity in terms of technical know-how, skills, and so forth. For example, the Development Bank of Southern Africa (DBSA) has a project preparation facility and partners with smaller DFIs to build capacity.”

Cover photo:  Jedidiah -Jordan©Pexels