JUST IN: AfDB, EU Bank push for private sector financing

Oliver Kazunga, Senior Business Reporter

THE African Development Bank Group (AfDB) and the European Bank for Reconstruction and Development have partnered to promote sustainable development by catalysing new funding sources to bridge the US$2,5 trillion annual financing gap in Africa.

AfDB said together with 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 US$2,5 trillion annual financing gap for development in Africa.

“This gap requires that development finance institutions work in partnership,” said AfDB in a statement.

Under the partnership, AfDB and the EBRD will capitalise on their respective expertise and experience, with a particular focus on climate change, green and resilient infrastructure and capital markets development.

The two institutions will also work on improving business environments, bolstering the real economy and mobilising private sector investment. – @okazunga