The African Development Bank Group and the European Bank on Monday signed a Memorandum of Understanding to promote sustainable private sector development in Africa.
In a statement issued by its Communication and external relations department, the AfDB said. “The MoU will help catalyse new sources of financing to help bridge the $2.5trillion annual financing gap for development in Africa.
“This gap requires that development finance institutions work in partnership.”
The bank stated that under this partnership, the AfDB and the EBRD would capitalise 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,” the AfDB stated.
It observed that COVID-19 was threatening progress made towards the United Nations Sustainable Development Goals and was exacerbating debt vulnerability of many African countries.
The bank stated that sustainable private sector development would be key to recovery and prosperity across the continent.