The African Development Bank Group (AfDB) and the European Bank for Reconstruction and Development (EBRD) on Monday signed a memorandum of understanding (MOU) to promote sustainable private sector development in Africa.
The MOU will help catalyse new sources of financing to help bridge the $2.5-trillion annual financing gap for development in Africa. This gap requires that development finance institutions work in partnership.
Under this partnership, the AfDB and the EBRD will capitalise on their respective expertise and experience, with a particular focus on climate change, green and resilient infrastructure, and capital markets development. They will also work on improving business environments, bolstering the real economy, and mobilising private sector investment.
Covid-19 is threatening progress made towards the UN Sustainable Development Goals and is exacerbating debt vulnerability of many African countries. Sustainable private sector development will be key to recovery and prosperity across the continent.
“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,” said Dr Akinwumi Adesina on signing the memorandum with his counterpart, EBRD President, Odile Renaud-Basso.
The African Development Bank (AfDB) and the EBRD have a long history of cooperation. Last month, the two institutions signed a $114-million financing package for the construction of the largest private solar plant in Egypt.
