This paper looks at the challenges facing Africa and investigates the role played by capacity development, giving particular attention to higher education systems. Key in the consideration of policies reviewed in the paper is the role of tertiary education and its contribution to generating the skilled people needed to transform African economies as well as contribute to innovations through education and research in science and technology. The policies that need to be reviewed in the African context and the investments needed at the national and university levels are also highlighted. The paper concludes with what can be done to revitalize the education sector with special focus on the role of capacity development institutions such as the African Capacity Building Foundation.