Two banks plan to catalyse investment amid $2.5tn funding shortfall.
The African Development Bank (AfDB) and the European Bank for Reconstruction and Development (EBRD) have signed a memorandum of understanding to promote sustainable private-sector development in Africa.
Under the partnership, the AfDB and the EBRD will capitalise on their respective expertise and experience, with a particular focus on climate change and green and resilient infrastructure. They will also work to improve business environments, bolster the real economy and mobilise private-sector investment.
The ultimate aim of this work will be to catalyse new sources of financing that help bridge the $2.5tn annual financing gap for development in Africa, a gap that is holding back development across the continent.
Dr Akinwumi Adesina, president of the AfDB said: “The new partnership agreement between our two institutions will pave the way for us to do more together, especially in supporting the growth of Africa’s private sector. The impact of Covid-19 on government resources is huge and we need to mobilise more private resources to help African countries build back stronger.”
EBRD president Odile Renaud-Basso agreed: “The Covid-19 crisis has made the need for better and closer collective action even more urgent. Over the years, collaboration between the EBRD and the AfDB has grown from strength to strength in the region.”
The AfDB and EBRD have built up co-operation over time and last month the two institutions signed a $114m financing package for the construction of the largest private solar plant in Egypt.