Africa: Development Finance Institutions Club Together At G7 Summit Earmarking U.S.$80 Billion for African Private Sector

Jun 15, 2021 | Namibia Economist - All Africa

The development finance institutions of the G7, joined by the International Finance Corporation, the European Bank for Reconstruction and Development, the African Development Bank and the European Investment Bank committed US$80 billion for private sector investment across the continent over the next five years.

The announcement is a welcome boost to support the long-term development objectives of African economies that have been impacted by the Covid crisis. It is the first time the G7 Development Finance Institutions have come together to make a collective partnership commitment to the African continent.

The IMF estimates that sub-Saharan Africa needs additional financing of around US$425 billion between now and 2025 to help strengthen the pandemic response spending and reduce poverty in the region.

The UK Minister for Africa, James Duddridge, said: "The UK is proud to back this commitment by world leaders at the G7 Summit to invest more than US$80 billion in Africa's private sector over the next 5 years.

"This investment will create jobs, boost economic growth, help tackle climate change and fight poverty. It comes at a crucial time as the continent rebuilds its economies, severely impacted by Covid-19."

Nick O'Donohoe, the Chief Executive of CDC Group, said: "The patient, high quality capital that DFIs provide is urgently needed if African economies are to start to rebuild quickly from the impact of the pandemic. CDC is committed to building long term investment partnerships in Africa that fuel sustainable private sector growth in support of the UN's Sustainable Development Goals."

Werner Hoyer, President of the European Investment Bank, said: "The EIB welcomes G7 leadership to enhance support for high-impact investment across Africa during and after the pandemic. Last year the EU Bank's engagement in Africa, as part of Team Europe, represented the largest ever support for climate action and investment in fragile states in 55 years of EIB operations on the continent. We stand ready to cooperate further with African and multilateral partners to tackle both COVID-19 and accelerate the green transition in Africa."... Read more on All Africa

Source: All Africa