ABIDJAN, Ivory Coast – A global coalition of public development banks has emphasized the urgency of immediate resource mobilisation for Africa. The coalition also committed to deepening cooperation to boost investment opportunities across the continent.
This came out of a recent meeting hosted by the Abidjan headquartered African Development Bank (AfDB), the African Association of Development Finance Institutions in collaboration with the International Development Finance Club. Participants in the meeting brainstormed on joint actions that could help boost a strong and inclusive economic recovery in Africa anchored in a dynamic private sector.
The meeting was held virtually and follows the first Finance in Common Summit held last November. At that summit, public development banks committed to working together to support the transformation of the global economy and society towards sustainable and resilient development.
During the meeting, heads of public development banks and international partners focused on concrete proposals and innovative financial solutions to unlock the potential of African financial institutions to promote sustainable development investments in Africa.
“The African Development Bank is strongly supportive of public development banks,” AfDB president Akinwumi Adesina said in his opening remarks.
“As public development banks, we must deepen our ability to reach all parts of Africa. To ensure financial inclusion, especially for the unbanked, and expand access to finance, savings and insurance products and services, we need to work as one unified system. Public development banks must strengthen their capacity to deepen domestic capital markets and stock exchanges. This would hasten access to financing and unlock new opportunities.”
Rémy Rioux, chairperson of the International Development Finance Club, said: “African challenges, more than anywhere else, require us all to go seek coordinated responses and actions”.
“Because in Africa, we need to leave no one behind. Let’s finance in common and build now a common and positive story of innovation and investment in Africa, leveraging ODA and mobilising all willing stakeholders. The days of pure aid are over. Africa is ready for sustainable investment.”
Public development banks have a key role to play in Africa and in recent months, institutions like the African Development Bank have channelled resources to various sectors and clients, particularly underserved areas like health, social investments, housing, agriculture and climate.
Discussions covered measures that could be taken to strengthen the balance sheet of African public development banks and provide financing and additional tools to support the private sector in Africa. Participants also discussed challenges faced by African public development banks.