African, European development banks ink MoU

YAOUNDE, Cameroon

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.

In a statement, the AfDB said the MoU will help catalyze new sources of financing to help bridge the $2.5 trillion annual financing gap for development in Africa.

“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,” said AfDB President Akinwumi Adesina.

Adesina said the impact of COVID-19 on government resources is huge and there is a need to mobilize more private resources to help African countries build back stronger.

EBRD President Odile Renaud-Basso, for her part, said: “The Covid-19 crisis has made the need for better and ever closer collective action even more urgent. Collaboration between the EBRD and the African Development Bank has grown from strength to strength over the years in the region. This partnership will allow our institutions to do even more to promote sustainable private sector development in North Africa.”

Under the partnership, the AfDB and the EBRD “will capitalize on their respective expertise and experience, with a particular focus on climate change, green and resilient infrastructure and capital markets development,” according to the statement.

The two banks will also work on improving business environments, bolstering the real economy and mobilizing private sector investment.

Following the signing of the MoU, Renaud-Basso wrote on Twitter: “Our new @EBRD @AfDB partnership framework will allow us to do even more to promote #sustainable private sector development in N (North) Africa.

“So more investment in the green economy, capital markets & improving the business environment, among many other areas.”