RISA Fund Report: Unlocking Finance to Power Africa’s Research and Innovation Future

This report, produced under the Research and Innovation Systems for Africa (RISA) Fund, supported by UK International Development, examines access to finance as a critical enabler for strengthening research and innovation ecosystems across the African continent.

Access to finance plays a pivotal role in translating research into practical innovations and enabling the uptake of new knowledge in both policy and private sector domains. While all countries continuously strive to improve financing for research and innovation, African countries face unique structural and contextual challenges that require tailored and sustainable solutions.

Across the continent, public investment in research and development (R&D) remains low. Many African countries allocate only a minimal fraction of their national budgets to R&D—often below the African Union–endorsed target of 1% of GDP. According to the World Bank, African countries currently spend an average of 0.45% of GDP on R&D, which is significantly below both the AU target and the global average of 1.7%.

As a result, a substantial share of funding for research and innovation in Africa comes from international donors. While this external support is valuable, it is often volatile and subject to shifting donor priorities and global economic conditions, such as those experienced during the COVID-19 pandemic and ongoing geopolitical changes. This volatility creates uncertainty and limits the long-term sustainability of research and innovation systems.

In parallel, private sector engagement in funding research and supporting innovation remains limited. This is frequently driven by perceptions of high risk and low returns, as well as weak linkages between researchers, innovators, and potential financiers. Compounding this challenge is limited financial literacy and institutional capacity: researchers, research institutions, and innovators often lack the knowledge, tools, and support needed to navigate funding mechanisms and engage effectively with investors.

The report underscores the urgent need to increase and diversify financial resources for research and innovation, drawing more robustly from both public and private sources. Strengthening financial literacy, improving institutional support structures, and creating enabling environments for private sector participation are essential steps toward building resilient, sustainable research and innovation ecosystems across Africa.