The Economic Commission for Africa (ECA) says Sub-regional multilateral development banks (MDBs) should be empowered to enable them mobilise long-term resources and provide affordable financing to African economies.
ECA’s Chief Economist and Deputy Executive Secretary, Hanan Morsy, said this in a statement published on the commission’s website on Sunday.
Morsy spoke at a high-level panel during the 57th Session of the ECA Conference of African Ministers of Finance, Planning, and Economic Development (COM2025) in Addis Ababa.
He underscored the need to address structural barriers to economic growth in Africa.
According to her, tightening global financial conditions and declining development aid threatens Africa’s ability to finance key infrastructure and development projects.
The News Agency of Nigeria (NAN) reports that the theme of the event was: “The Role of Sub-Regional Multilateral Development Banks in Delivering on Africa’s Development Objectives.”
Panelists at the session explored ways MDBs could enhance resource mobilisation, attract private investment, and support regional economic transformation.
Admassu Tadesse, President and CEO of the Trade and Development Bank, underscored the need for increased investment in trade
Tadesse added that such investment would enable infrastructure to support intra-African trade and industrialisation, particularly under the African Continental Free Trade Area (AfCFTA).
Fatima Elsheikh, Secretary-General of the Arab Bank for Economic Development in Africa (BADEA), also aired her view.
Elsheikh highlighted key constraints limiting MDBs’ effectiveness, including their reliance on low-income shareholders, limited callable capital, and high borrowing costs.
The panel also discussed potential global financial system reforms, including the reallocation of Special Drawing Rights (SDRs) to boost MDBs’ capital base and expand concessional lending to African countries.
Experts stressed the need for MDBs to align their strategies with Africa’s development goals, such as Agenda 2063 and the United Nations’ 2030 Sustainable Development Goals (SDGs).
They also called for more flexible financing models and deeper collaboration with global financial institutions to bridge Africa’s financing gap and drive sustainable economic growth.
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