The $2.5 Trillion Opportunity US Investors Can’t Access

If you believe in Africa’s economic future, as we do, you may also be frustrated that opportunities for US retail investors to participate are scarce.

Investors seek growth, and the numbers on Africa tell a remarkable growth story that is still unfolding:

• Africa’s median age is 19.
• By 2050, its population will reach 2.5 billion—more than a quarter of the world.
• Africa is home to 11 of the world’s 15 fastest-growing economies, all expanding at more than 6 percent.
• African stock markets have been among the best performing globally in 2025.
• Three African countries currently hold investment-grade ratings (Botswana, Mauritius, Morocco), and a half dozen countries were upgraded this year.
• A growing African middle class will drive a $2.5 trillion consumer market by 2030.
• More than 50 percent of all mobile-money accounts globally are registered in Africa, including 74 percent of all transactions and 66 percent of the transaction value.
• Across sectors—from FinTech to critical minerals to tourism to the creative economy—Africa is booming

Yet when it comes to investing in that growth, the reality is sobering. While Lagos and Nairobi are thriving tech hubs, most accessible retail investment options remain highly concentrated in a small number of countries, including South Africa and Egypt. Often, African funds will offer more exposure to US, Canadian, Australian, or European companies than to companies in Côte d’Ivoire, Senegal, or Ethiopia—among the continent’s fastest-growing economies. Sectors beyond finance and materials—like tech, health care, agriculture, and tourism—are largely overlooked.

Diversification is almost impossible. Through existing products, investors face concentrated country risk, political and currency volatility, higher fees, lower fund capitalization, and limited liquidity. African-wide funds exist, but many hold under $100 million in assets and have minimal sector or country diversity. The total amount invested through US funds is shockingly small, given the size of Africa’s economic potential. US-listed African companies skew heavily toward South African banks and miners.

Accredited investors gain more options—but the ideal product for everyday US investors still doesn’t exist: a low-cost, liquid, growth-focused fund offering diversified access to African countries and sectors.

Why are we seeing this market failure? Most exchange-traded funds follow market-capitalization or gross domestic product (GDP)-weighted portfolios. South Africa dominates. Nigeria should also be well represented by GDP, but has struggled with low capitalization, delisting, regulatory hurdles, and currency devaluation. Emerging exchanges across Africa are promising but nascent, with liquidity and diversification remaining limited. Investable companies cluster in a handful of sectors, as funds often have minimum capitalization and daily trading/liquidity requirements.

At the Milken Institute, we believe private capital markets can be unlocked, giving everyday investors a seat at the table—both in the US and Africa. This means building deeper, more inclusive African capital markets so Americans and Africans alike can invest in the continent’s growth.

Initiatives like the Ethiopian Securities Exchange are steps in the right direction, expanding investment opportunities in Africa’s second most populous country. Over the past decade, we have also partnered with the International Finance Corporation and the Motsepe Foundation to train more than 300 capital market scholars, equipping the next generation to strengthen Africa’s markets and unlock access for investors everywhere.

Africa’s growth story is real, measurable, and fast-moving. But unless we make capital markets more accessible, most investors will be left on the sidelines. It’s time to build the pathways that allow everyone to invest in Africa’s future.

Cory O’Hara contributed to this piece.