Africa risks losing more than $100 billion in foreign direct investment annually unless urgent legal reforms are undertaken, the President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, warned at a major legal conference in Kenya.
Addressing over 1,200 lawyers, judges, and officials at the Kenya Law Society’s Annual Conference in Diani, Adesina linked the continent’s investment shortfall directly to weak rule of law, high debt burdens, and the predatory practices of “vulture funds” exploiting fragile legal systems.
“Vulture funds buy discounted national debt, then aggressively sue vulnerable nations for full repayment plus inflated interest and fees through legal loopholes,” he explained.
“When Africa stands for the rule of law, the world will stand with Africa.”
Adesina highlighted the direct connection between judicial independence, transparent public finance, and the ability to attract critical foreign investment.
“Evidence suggests foreign direct investments move more to countries that have political stability, stable democracies, transparency, and low levels of corruption,” he said.
He also pointed to the importance of strong regulatory frameworks, public accountability, and respect for intellectual property rights—areas where many African nations continue to lag.
The AfDB chief called for immediate reforms, including stronger judicial independence, transparent natural resource laws that benefit communities rather than elites, the establishment of sovereign wealth funds, and robust African arbitration systems to settle disputes locally.
He urged legal professionals across the continent to become “guardians of promise,” enforcing constitutional safeguards on public spending and championing ethical practices.
“Justice is not a byproduct of development — it is the foundation of development,” he said.
Adesina pointed to concrete successes: AfDB-backed commercial courts in Rwanda and Côte d’Ivoire reduced dispute resolution times, unlocking more than $1 billion in investment.
In Seychelles, constitutional reforms mandating parliamentary approval for sovereign borrowing helped cut the debt-to-GDP ratio from over 100% to below 55%, while Kenya’s reforms in procurement and debt transparency have strengthened fiscal accountability.
The AfDB president’s message, met with a standing ovation, placed a clear responsibility on Africa’s legal community: bridging the continent’s massive investment gap depends on decisively upholding justice, transparency, and the rule of law.
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