The African Development Bank Group and the European Bank for Reconstruction and Development (EBRD) on Monday signed a memorandum of understanding to promote sustainable private sector development in Africa.
The memorandum of understanding will help catalyse new sources of financing to help bridge the $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 capitalize on their respective expertise and experience, with a particular focus on climate change, green and resilient infrastructure and capital markets development. They will also work on improving business environments, bolstering the real economy and mobilising private sector investment.
Covid-19 is threatening progress made towards the UN Sustainable Development Goals and is exacerbating debt vulnerability of many African countries. Sustainable private sector development will be key to recovery and prosperity across the continent.