Africa’s Hidden Wealth Challenges Aid Narrative

In this episode of the breakdown, new findings challenge long-held claims about African poverty by exposing the scale of Africa’s domestic capital and how little of it drives development. Researchers estimate the continent holds more than $4 trillion in local resources, including pension funds, bank assets, insurance pools and central bank reserves. Much of this capital remains underused, even as African governments borrow heavily from foreign lenders. As a result, countries across the continent now spend close to $90 billion each year servicing external debt, raising questions about policy choices, financial governance and why domestic wealth fails to fund Africa’s own transformation.