As Africa’s economies continue to grow, the conversation is no longer whether capital will flow into Africa, but rather through which jurisdictions and under what frameworks that capital will move.
At a recent fireside discussion organised by Orison Legal, Ziyad Bundhun, CEO of AFG Capital, and Janesh Chuttoo, Partner at Orison, reflected on one of the defining realities of the next two decades: Africa’s demographic and urbanisation trends will inevitably drive unprecedented capital requirements across the continent. Infrastructure, energy transition, climate finance, transport, housing and digital connectivity will require financing on a scale that traditional funding channels alone cannot meet.
Current estimates place Africa’s annual infrastructure financing gap at approximately USD 75 billion, with climate-related financing needs potentially pushing that figure significantly higher. Yet despite these challenges, Africa remains uniquely positioned as one of the world’s most promising long-term investment destinations, supported by the continent’s rapidly growing working-age population and increasing regional economic integration.
The question for Mauritius is therefore not whether opportunities exist, but whether the jurisdiction is prepared to evolve quickly enough to remain central to those capital flows.
The imperative for specialised skill set
Over the past two decades, Mauritius has successfully established itself as a recognised international financial centre for Africa through its legal framework, fund structures and cross-border investment platforms. However, the next phase of growth will require a deeper level of specialisation.
As highlighted during the discussion, future African financing structures will increasingly rely on blended finance models combining concessional finance, development finance institution participation and private capital. ESG considerations are also no longer optional. Development finance institutions and institutional investors are now demanding robust ESG frameworks as a prerequisite for funding African projects.
This creates both a challenge and an opportunity for Mauritius.
To remain competitive, Mauritius must continue moving beyond its traditional role as a structuring jurisdiction and develop specialised expertise capable of supporting complex African transactions. This includes deeper sector-specific capabilities in areas such as energy, mining, infrastructure and climate finance, alongside stronger ESG advisory and reporting ecosystems.
Importantly, the discussion also highlighted a broader strategic point: Africa is relationship-driven and increasingly geopolitical. Financial centres that succeed in attracting African capital flows will not do so through technical capability alone. Economic diplomacy, institutional engagement and on-the-ground presence across African markets will play a decisive role in shaping the next generation of investment corridors.
One size does not fit all
Another key takeaway was the need for greater flexibility when engaging with African counterparties and businesses. Applying identical financing, reporting and compliance expectations across all markets may not always reflect the realities of developing economies at different stages of regulatory maturity. In many instances, facilitating African investment will require not only technical structuring expertise, but also education, partnership-building and institutional support.
The opportunity for Mauritius remains significant.
African pension funds are growing rapidly and are increasingly exploring alternative investments beyond traditional asset classes. Regional private equity, infrastructure and climate-focused investment vehicles are expected to continue expanding over the coming decade, creating opportunities for Mauritius-based structures and service providers to position themselves at the centre of those capital flows.
The next evolution of Mauritius as an IFC will therefore depend not only on maintaining strong regulatory standards, but also on developing the specialised expertise, regional connectivity and strategic presence necessary to support Africa’s long-term financing needs.
The jurisdictions that will benefit most will be those capable of evolving from passive conduits into active partners in Africa’s economic development.
Partner