Mobilizing domestic capital is no longer a secondary consideration; it is the basis of sustainable and autonomous development. For too long, external funding has dominated the financial landscape of emerging economies, leaving them vulnerable to geopolitical shifts, conditional aid, and unpredictable foreign investments. Yet, beneath the surface, domestic capital remains a largely untapped reservoir of immense potential, whether held by local enterprises, financial institutions, or private individuals. Estimates suggest that in Sub-Saharan Africa alone, high-net-worth individuals possess over $800 billion in assets, with only a fraction directed toward development efforts. Mobilizing even a portion of this capital could unleash record growth and build long-term resilience, securing development rooted in local ownership and responsive to the region’s unique challenges and opportunities.
The question is not whether this capital exists but how to unlock and channel it effectively toward development objectives. Domestic capital, if strategically harnessed, has the power to drive systemic change. However, the disconnect between local wealth and national development agendas stems from inadequate frameworks that fail to align incentives, mitigate risks, or establish trust. Creating an enabling environment—built on robust governance, transparency, and innovative financial
instruments—must take center stage. This is where the role of multi-stakeholder action becomes indispensable. No single sector can navigate the complexities of domestic resource mobilization alone. Governments, the private sector, and philanthropic organizations must work together, leveraging their collective strengths to create a system that attracts, retains, and maximizes domestic investments.
A resilient system for mobilizing domestic capital is anchored in three key pillars: governance, adaptability, and inclusivity. Governance ensures the integrity of financial flows, creating a transparent and accountable framework where capital can move confidently. Regulatory reform is crucial, particularly in tax policy, to incentivize local investments and ensure that bureaucratic or financial barriers do not stifle domestic capital. Economic instruments, such as local currency bonds and blended finance mechanisms, must be adaptable to meet the needs of diverse investors—from large-scale corporate entities to grassroots community organizations. Inclusivity is the linchpin, ensuring that domestic capital mobilization reaches across socio-economic strata. Without inclusivity, domestic capital risks reinforcing existing inequalities rather than serving as a catalyst for broad-based growth. In this context, resilience is not just about absorbing shocks; it is about creating systems that thrive on diversity and are dynamic enough to evolve alongside shifting economic landscapes.
Multi-stakeholder partnerships are not an optional addition to this equation—they are the driving force. Philanthropy brings patient capital and focuses on areas traditionally underserved by the market, such as education, healthcare, and climate resilience. Governments provide the policy frameworks and legal structures that allow for long-term investment. With its ability to innovate and scale, the private sector bridges the gap between philanthropy and profitability, ensuring that development initiatives are impactful and financially viable. Working in synergy can transform often fragmented and siloed efforts into coordinated, strategic initiatives that drive economic progress and social equity. Consider the fact that, according to the African Development Bank, infrastructure needs across the continent amount to $130-170 billion annually, with a financing gap of $68-108 billion. This gap cannot be filled by external resources alone. It demands a concerted effort to tap into domestic capital, aligning local investments with national development priorities. When effectively harnessed, domestic capital can fill this gap and drive innovation, resilience, and long-term prosperity.
The time for catalytic change is now. Multi-stakeholder action is critical to revolutionizing how domestic resources are mobilized and deployed. This is not simply about financial mobilization but about redefining the architecture of development, ensuring that progress is driven from within and sustained by the power of local capital. With the preceding in mind, the East Africa Philanthropy Network cordially invites you to the “Unlocking Domestic Capital for Transformational Progress: Multi-Stakeholder Action in Advancing the Development Agenda” breakfast roundtable, taking place on the 22nd of October at the Serena Hotel from 8:00 AM to 12:00 PM. This high-level session aims to convene key stakeholders from the philanthropic sector, government, and private enterprise for a strategic dialogue on mobilizing domestic resources to drive sustainable and revolutionary development. The roundtable will explore innovative approaches, actionable frameworks, and cross-sector partnerships essential for unlocking domestic capital, fostering resilience, and advancing impactful solutions that align with the region’s long-term development goals.
