Africa Investment Forum 2019: African Development Bank U.S. International Development Finance Corporation team up to mobilise private capital for Africa’s development

The U.S. International Development Finance Corporation (DFC) and the African Development Bank Group, signed an agreement to mobilize private capital in support of development in Africa. The Memorandum of Understanding (MOU) was signed on the sidelines of the Africa Investment Forum in Johannesburg, South Africa.

Adam Boehler, DFC Chief Executive Officer said the multitude of urgent development challenges—from infrastructure development to financial inclusion and food security required collaboration with like-minded partners.

“The MOU signed today will help harness the diverse strengths of DFC and the African Development Bank to make tangible progress on our shared goals across the continent,” said Boehler. “To tackle the multitude of urgent development challenges facing Africa—from infrastructure development to financial inclusion and food security—collaboration with like-minded partners is essential.”

African Development Bank president Akinwumi Adesina, who signed on behalf of the Bank said the partners will focus on priority sectors including critical infrastructure, power and energy, financial services and agriculture and prioritize investments that empower the region’s women.

“Through these efforts, DFC and the Bank aim to invest a combined $2 billion, with a goal of mobilizing an additional $3 billion from the private sector alongside its investments. Doing so would support the total investment of $5 billion in regional development projects. The partners will use debt financing, equity investments, political risk insurance, and other financial tools to meet these goals,” he said.

The partners will focus on priority sectors including critical infrastructure, power and energy, financial service and agriculture. They will prioritize investments that empower the region’s women. Through these efforts, DFC and the Bank aim to invest a combined $2 billion, with a goal of mobilizing an additional $3 billion from the private sector alongside its investments. Doing so would support the total investment of $5 billion in regional development projects. The partners will use debt financing, equity investments, political risk insurance, and other financial tools to meet these goals.

Original source: AfDB
Published on 12 November 2019