Private credit in Africa has surged, tripling to $5.6 billion by the end of 2025, according to a Moody’s report. This growth, driven by non-bank investors, still accounts for only 0.3% of the global private credit market. The report suggests that development finance institutions could play a crucial role in attracting more global investment into African loans, thereby helping bridge the continent's significant infrastructure funding gap estimated at up to $100 billion annually.
Written by the local model on 2026-09-12,
using this article's own text rather than the other coverage of the
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Story summary
Private credit in Africa has surged significantly over the past five years, tripling to $5.6 billion by the end of 2025, according to a Moody’s report. This growth represents just 0.3% of the global private credit market, which stands at $1.8 trillion. The report highlights that pooling African loans could attract more private capital, with development-finance institutions assuming some risk to make these loans attractive to large global investors like pension funds and insurers.
This move is crucial as it addresses a significant infrastructure financing gap on the continent, estimated at up to $100 billion annually. Traditional banks are limited in their ability to provide this funding due to constraints such as high government borrowing and insufficient domestic savings. Thus, private credit could serve as an essential long-term financing source for infrastructure projects and businesses that traditional banks cannot or will not fund.
Written for “African Private Credit Growth” on 2026-09-12,
grounded in this article and the 0 other(s) covering the same event.
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Leaning score -0.45 for article 8361 (high confidence, 2 verified quotes) · logged 2026-09-12
Loans made by investment funds and other non-bank investors rather than traditional banks grew more than threefold in five years to $5.6 billion at the end of 2025, according to a new Moody’s report.
uncertain
Loans → make → report
But that represents just 0.3% of the $1.8 trillion global private credit market.
asserted
that → represent → market
The bigger opportunity may be in pooling African loans, say the report’s authors.
uncertain
authors → pool → loans
Development-finance institutions can take on some of the risk in the loans, making the safer portion attractive to pension funds, insurers and other large global investors that might otherwise stay away.
uncertain
that → take → funds
Moody’s expects these structures to attract much larger pools of private capital into Africa.
asserted
structures → expect → Africa
That could make private credit an important source of long-term financing for infrastructure and businesses that banks cannot or will not fund.
uncertain
banks → make → that
African banks are constrained by government borrowing and shallow domestic savings, while the continent faces an infrastructure financing gap estimated at up to $100 billion a year.
asserted
continent → constrain → billion
