On May 12, 2026, a panel discussion titled 'Investments in Africa: Perceived Risks and Real Risks, Paths to Profitability' was recorded at the Kenyatta International Convention Centre (KICC) in Nairobi, Kenya. The event was hosted by Bruno Faure and featured Françoise Lombard, CEO of Proparco, the private sector financing arm of the French Development Agency (AFD).
According to Proparco's website, the institution has invested over β¬10 billion in Africa since 1977, focusing on infrastructure, renewable energy, and financial inclusion. Lombard emphasized that while investors often cite political instability and currency volatility as key risks, data from the African Development Bank shows that default rates on African sovereign bonds have been lower than those in other emerging markets over the past decade.
The discussion highlighted that real risks include regulatory changes and infrastructure gaps, but these can be mitigated through partnerships with local institutions and multilateral guarantees. A 2025 report by the International Finance Corporation (IFC) noted that private equity investments in Africa yielded an average annual return of 12% over five years, outperforming global benchmarks.
Lombard called for more blended finance instruments to de-risk investments, citing Proparco's 'Arizon' guarantee fund, which has mobilized β¬1.5 billion for African SMEs since 2020. The panel concluded that with proper due diligence and local knowledge, Africa offers competitive returns compared to other frontier markets.
