Can fund-of-funds unlock Africa’s much-needed wave of growth?

African policymakers and investors are rallying around a pragmatic strategy of mobilising domestic savings, modernising governance and using fund-of-funds structures to channel capital into infrastructure, manufacturing and productive sectors.

- By Kara le Roux

The shift comes as Africa’s 2025 economic indicators show steady growth but persistent structural strain. Its GDP is expected to expand by about 4% over the next year, the African Development Bank states, outpacing the global average. But it is still miles short of generating the 25 million annual wage-paying jobs that the bank estimates the continent needs. Demographics, rising borrowing costs and geopolitical flux are tightening the margins for error.

John McDermott, chief Africa correspondent at The Economist, told delegates at SuperReturn Africa, a private equity and venture capital conference, that leaders are acknowledging the end of passive reliance on Western partners.