The African Development Bank (AfDB) Group and key regional Development Finance Institutions (DFIs) are to collaborate to bridge the financing gap and mobilise additional funding for Africa’s development.
This is contained in a statement by the bank on Saturday.
The bank and the institutions said the initiative was designed to enhance joint project development, harmonise technical standards and improve the deployment of resources across African economies.
The AfDB president, Sidi Ould Tah, announced the plans for a Pan-African Financial Coordination Platform to foster greater synergy among African financial institutions and ensure the efficient deployment of resources at a meeting with financial institutions.
According to the statement, the meeting followed an earlier engagement with heads of African securities exchanges, as the Bank seeks wide industry input before the framework is finalised.
“African countries require huge resources to meet their development needs, making stronger collaboration among DFIs critical.
“Regional DFIs are closest to the beneficiaries, emphasising the need to reinforce their capital base to enable them to deliver on their mandates,” he said.
He announced the establishment of a task force to work on key issues identified during the consultations, including de-risking, equity strengthening, concessional loans and liquidity support.
The AfDB president said he would also engage private sector leaders and global rating agencies in London in mid-December after the final meeting of the 17th replenishment of the African Development Fund.
The leaders of the ECOWAS Bank for Investment and Development, the Eastern and Southern African Trade and Development Bank, participated in the meeting.
Others are West African Development Bank, Shelter Afrique and the Africa Finance Corporation.
Admassu Tadesse, president of the Eastern and Southern African Trade and Development Bank, called for a standby liquidity mechanism and the use of callable capital guarantees to strengthen regional DFIs.
Mr Tadesse said that multilateral development banks such as the AfDB possessed instruments that could significantly reduce financing costs and boost impact.
Serge Ekue, president of the West African Development Bank, said that political instability in the region had affected credit ratings, making the AfDB’s AAA ranking vital for stabilising the market.
Mr Ekue emphasised the need to avoid duplication of efforts and to deepen clarity in operational roles, saying regional DFIs are small enough to care, but big enough to execute.
Similarly, George Donkor, president of the ECOWAS Bank for Investment and Development, called for enhanced synergy among African financial institutions.
Mr Donkor emphasised the value of larger partners supporting smaller DFIs through co-lending and syndication.
Shelter Afrique’s chief executive officer, Thierno-Habib Hann, also reiterated the need for coherent coordination to improve resource mobilisation and accelerate development outcomes.
Sameh Shenouda, representing the Africa Finance Corporation, urged DFIs to break sectoral silos, stressing the importance of presenting a unified African position at global events.
According to the AfDB’s vice president for private sector, infrastructure and industrialisation, Solomon Quaynor, the bank will hold further bilateral talks to determine the most effective approach to capital allocation.
(NAN)