The African Development Bank (AfDB) Group and the European Bank for Reconstruction and Development (EBRD) have signed a memorandum of understanding (MoU) to promote sustainable private sector development in Africa.
The MoU is expected to help catalyse new sources of financing to help bridge the $2.5-trillion-a-year financing gap for development in Africa.
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.
The parties state that Covid-19 is threatening the progress made towards achieving the United Nations Sustainable Development Goals and is exacerbating the 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,” says AfDB president Dr Akinwumi Adesina.
“The Covid-19 crisis has made the need for better and ever closer collective action even more urgent. Collaboration between the EBRD and the AfDB 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,” adds EBRD president Odile Renaud-Basso.