AfDB, European bank to bridge US$2.5trn financing gap in Africa

The African Development Bank (AfDB) Group and the European Bank for Reconstruction and Development (EBRD) have signed a memorandum of understanding (MoU) on Monday to promote sustainable private-sector development in Africa.

The MoU will catalyse new sources of financing to help bridge the US$2.5 trillion annual financing gap for development in Africa. This gap requires that development finance institutions work in partnership.

Under this partnership, the African Development Bank and the EBRD will capitalise on their respective expertise and experience, with a particular focus on climate change, green and resilient infrastructure and the development of capital markets. They will also work to improve business environments, bolster the real economy and mobilise private-sector investment.

Covid-19 is threatening the progress made towards the UN Sustainable Development Goals and 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,” said Akinwumi Adesina, President of the African Development Bank, on signing the MoU with his EBRD counterpart.

EBRD President Odile Renaud-Basso said: “The Covid-19 crisis has made the need for better and closer collective action even more urgent. Over the years, the collaboration between the EBRD and the African Development Bank has grown from strength to strength in the region. This partnership will allow our institutions to do even more to promote sustainable private-sector development in North Africa.”

The African Development Bank and EBRD have a long history of cooperation. Last month, the two institutions signed a US$ 114 million financing package for the construction of the largest private solar plant in Egypt.

This new partnership will enable them to strengthen their potential for joint projects and activities, unlocking investment opportunities in economies where both organisations operate.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.