AUDA-NEPAD and University of Nairobi Champion Sustainable Domestic Financing for (R&D) Projects in Africa
The High-Level Seminar on Sustainable Domestic Financing for Priority Research & Development (R&D) Projects in Africa took place on October 7-8, 2024, at the Hyatt Regency in Nairobi, Kenya. This pivotal event, organized by the African Union Development Agency (AUDA-NEPAD) in collaboration with the Ministry of Education, Kenya, the University of Nairobi, and the Kenya Private Sector Alliance (KEPSA), brought together key stakeholders from across the continent to explore new and innovative ways to address Africa’s R&D financing challenges.
This seminar is a culmination of research efforts spearheaded by Dr. Vincent Okungu, a Calestous Juma Science Leadership Fellow from the University of Nairobi. Dr. Okungu has been a driving force behind the development of sustainable financing models for R&D in Africa, using Kenya and Rwanda as case studies. His research has been central to shaping the seminar’s focus on how African nations can mobilize domestic resources to create a self-reliant and innovative research ecosystem. Through his leadership, this seminar served as a platform for experts from various sectors to share best practices and explore strategic solutions for securing long-term funding for high-priority R&D projects
In his opening presentation, Dr. Okungu provided an in-depth analysis of the funding gaps that have long plagued Africa’s R&D sector. He highlighted the startling reality that Africa’s investment in research and development remains alarmingly low, averaging less than 0.4% of GDP—far below the 2% target set by African nations. Countries like Kenya and Rwanda, which are featured in Dr. Okungu’s research, continue to fall significantly short of their R&D funding targets, which limits their capacity to innovate and compete globally. Without substantial increases in domestic funding, Dr. Okungu cautioned, Africa risks being left behind in key areas such as healthcare, agriculture, and technology.
Dr. Okungu’s research emphasizes the urgent need for Africa to move away from a dependence on donor funding and instead develop self-sustaining, locally-driven financing mechanisms. He stressed that Africa’s ability to generate its own resources for R&D is critical to addressing its unique challenges, from combating pandemics to improving food security. The seminar brought these issues to the forefront, calling for greater government commitment to increasing R&D investment and fostering public-private partnerships that can provide the financial backing needed to drive innovation.
A key theme throughout the seminar was the vital role that universities play in driving research and innovation. Prof. Margaret Hutchinson, Vice Chancellor of the University of Nairobi, provided a powerful academic perspective on this issue, highlighting the importance of universities as engines of innovation and transformation. She argued that African universities must be at the center of the continent’s efforts to advance research and technology, but they need more financial and strategic support to fulfil this role.
Prof. Hutchinson stressed that a holistic approach to university funding is essential for nurturing the next generation of researchers and innovators. She pointed out that universities are often underfunded, which undermines their ability to contribute meaningfully to the R&D landscape. To change this, she called for governments, the private sector, and international partners to invest not just in research infrastructure but also in students, faculty, and academic programs. “Our universities must be at the heart of the research ecosystem, and students need to be fully supported on their academic journeys if we are to truly drive innovation,” Prof. Hutchinson said. She advocated for a comprehensive approach to funding that includes scholarships, mentorship programs, and enhanced research facilities to enable universities to play a pivotal role in Africa’s R&D ecosystem.
One of the seminar’s major focuses was the critical need to engage the private sector in supporting Africa’s R&D efforts. Speakers throughout the event underscored the fact that private sector involvement in R&D across the continent remains minimal, despite the sector’s enormous potential to drive innovation and economic growth. Blended finance models, which combine public and private investments to reduce risk and encourage large-scale funding, were highlighted as a key mechanism to attract more private sector investment.
Discussions stressed the importance of government policies that incentivize private sector investment in R&D. Recommendations included offering tax incentives, grants, and other forms of financial support to make R&D investments more attractive to businesses. By creating a more conducive environment for private sector engagement, African countries can tap into additional resources to fund research projects that address the continent’s most pressing challenges. Case studies from other regions demonstrated how these blended finance models have been successful in scaling up R&D efforts.
A major highlight of the seminar was the exploration of emerging technologies and their potential to revolutionize key sectors in Africa, particularly healthcare. Panelists shared numerous case studies that demonstrated how technologies such as artificial intelligence (AI), drones, and biotechnology are already transforming industries in Africa. For instance, AI is improving diagnostic accuracy in healthcare settings, while drones are being used to deliver life-saving medical supplies to remote areas.
However, the seminar also acknowledged the significant barriers to widespread adoption of these technologies. Infrastructure gaps, regulatory hurdles, and a lack of skilled professionals were identified as key obstacles that need to be addressed to fully harness the potential of these technologies. Speakers emphasized the need for African governments and private sector actors to invest in digital infrastructure and create supportive regulatory frameworks that foster innovation while protecting public safety.
A central theme of the seminar was the importance of regional collaboration in advancing R&D across Africa. Participants agreed that African countries must work together to pool resources, share knowledge, and strengthen research infrastructure. The African Continental Free Trade Area (AfCFTA) was highlighted as a critical framework for enabling cross-border partnerships that can scale up R&D projects across the continent. By collaborating, African nations can ensure that even smaller or less developed countries can benefit from advancements in research and innovation.
Panelists discussed the importance of aligning national and regional R&D priorities to create a more coordinated research agenda. They also pointed out that regional collaboration allows countries to share resources and expertise, which can lead to more cost-effective and impactful R&D investments.
AUDA-NEPAD reaffirmed its commitment to working with African governments, research institutions, and the private sector to foster partnerships that will enable sustainable investments in R&D. The organization also called for greater efforts to align national policies with continental strategies, ensuring that R&D financing becomes a priority for all African countries
The High-Level Seminar on Sustainable Domestic Financing for R&D concluded with a series of recommendations aimed at improving Africa’s R&D landscape. Participants called for governments to adopt scientific priority-setting platforms that would ensure that R&D investments are aligned with Africa’s most pressing challenges, particularly in areas such as healthcare, genomics, and agriculture. By focusing on these critical sectors, African nations can ensure that their limited resources are being used most effectively.
The seminar also emphasized the importance of continued regional collaboration to foster a competitive and sustainable R&D ecosystem. Through cross-border partnerships, shared infrastructure, and coordinated research efforts, Africa has the potential to develop a self-sustaining innovation ecosystem that not only addresses the continent’s unique challenges but also positions Africa as a global leader in research and development.
The event marked a crucial moment in Africa’s journey toward securing sustainable R&D funding. It paved the way for more impactful investments, fostering innovation and driving long-term prosperity across the continent.
