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.
This was contained in a statement from the AfDB on Monday.
According to the statement, the memorandum of understanding will help catalyse new sources of financing to help bridge the 2.5 trillion dollars annual financing gap for development in Africa.
The statement highlighted that the gap requires that development finance institutions need to work in partnership.
The bank noted that both institutions would capitalise on their expertise and experiences with a focus on climate change, green and resilient infrastructure and capital market development.
It also noted that both institutions would work on improving business environments, bolstering the real economy and mobilising private sector investment.
President of the AfDB, Dr Akinwumi Adesina said the new partnership would pave the way for both institutions 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.”
Also, President of the EBRD, Mr Odile Renaud-Basso said the pandemic had made the need for better and closer collective action 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.”
The new partnership would enable the two institutions to strengthen the potential for joint projects and activities, unlocking investment opportunities in their common countries of operations.
