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By Chinenye Anuforo
A growing chorus of African policy and legal experts is calling for a decisive shift in the continent’s development strategy, arguing that robust legal frameworks not increased foreign aid will determine Africa’s long-term economic trajectory.
At the forefront of this conversation is Eric Gumbo, a partner at G&A Advocates LLP, who points to Kenya as a leading example of how legal innovation can reshape national financing models and unlock domestic capital.
For decades, Africa’s development narrative has been anchored on external funding from multilateral institutions such as the World Bank and IMF to bilateral donors and debt relief programmes. While these mechanisms have played significant roles, experts say they have also entrenched a cycle of dependency that limits sustainable growth.
Gumbo argued that the real constraint is not a shortage of capital but the absence of strong, predictable legal systems that can convert available capital into viable investments.
“The shortage is not of money, but of investable projects supported by legal certainty,” he said.
According to the African Development Bank, Africa faces an annual infrastructure financing gap of between $68 billion and $108 billion. However, analysts note that global capital markets are awash with liquidity, much of which bypasses Africa due to regulatory uncertainty, weak contract enforcement, and shifting policy environments.
In response, Kenya has introduced a sweeping set of legal and institutional reforms aimed at mobilising domestic resources. Central to this effort is the proposed KSh 5 trillion National Infrastructure Fund (NIF), designed to channel pension funds, private equity, and retail investments into large-scale infrastructure projects.
Unlike traditional sovereign borrowing, the fund is structured to absorb key legal and sovereign risks at the project level, thereby reducing uncertainty for investors and lowering the cost of capital.
Industry observers say this model could transform how infrastructure is financed across Africa by creating a more stable and transparent investment environment. By acting as a buffer between the state and private capital, the framework allows diverse stakeholders including development finance institutions, pension managers, and individual investors to participate without exposure to excessive risk.
The initiative also aligns with broader continental efforts to deepen capital markets and reduce reliance on external debt.
Gumbo noted that Kenya’s approach reflects lessons from countries such as Rwanda, Botswana, and Mauritius, where strong institutions and regulatory clarity have played central roles in economic transformation.
He further highlighted the importance of citizen participation in development, pointing to the recent partial listing of the Kenya Pipeline Company on the Nairobi Securities Exchange as a milestone in democratising wealth creation.
“When citizens have a stake in national infrastructure, development becomes inclusive and sustainable,” he said.
Plans to establish a sovereign wealth fund with an intergenerational focus are also expected to reinforce this model by ensuring that current revenues are reinvested into future development priorities.
However, stakeholders warn that legal reform alone is not sufficient. Effective governance, transparency, and insulation from political interference remain critical to ensuring that such frameworks deliver their intended outcomes.
Experts also emphasised the evolving role of the legal profession in Africa’s development agenda. Rather than merely interpreting laws, legal practitioners are increasingly expected to design and shape frameworks that enable investment, innovation, and economic growth.
“There is a need for a shift from reactive lawyering to proactive legal architecture that supports development,” Gumbo said, adding that incremental, continuous improvements would be more effective than waiting for perfect systems.
Global development data underscores the stakes. Estimates indicated that a 10 per cent increase in infrastructure investment can boost long-term GDP growth in emerging economies by up to two percentage points, with direct impacts on employment, healthcare, and education outcomes.
As African economies navigate rising debt pressures and shifting global financial conditions, analysts say the case for internally driven solutions is becoming more urgent.
Gumbo maintains that the continent’s path to prosperity lies in leveraging its own resources through strong institutions and innovative legal frameworks.
“Africa does not need to borrow its way to prosperity,” he said. “It needs to build its way there using the assets it already has and the institutions it must now have the courage to create.”
