Africa can save about 299 billion dollars annually through more efficient public spending.
The African Development Bank (AfDB) said this in its 2026 African Economic Outlook released during the banks 2026 annual Meetings in Brazzaville.
The report said improving spending efficiency would help African countries ease financing constraints and support economic growth.
It said that more than 40 per cent of public investment across the continent was currently lost to inefficiencies.
According to the report, stronger public financial management systems are necessary to ensure resources are deployed productively.
The report urged governments to improve project selection, procurement processes, fiscal planning and oversight mechanisms.
It also called for increased transparency, accountability and public participation in budget implementation.
According to the report, digitising fiscal systems and tightening procurement controls will reduce leakages of public resources.
The report described efficiency reforms as both a governance priority and an important financing strategy for Africa.
It added that improving public spending outcomes would enable countries to achieve higher growth within existing resource levels.
The report further called for gradual fiscal reforms to strengthen revenue generation and public confidence in taxation systems.
It recommended expanding tax bases, improving tax administration and strengthening customs and audit systems.The report also urged African countries to deepen capital markets and strengthen public-private partnership frameworks to attract long-term investments.
