DFIs and partners to invest over $80bn into African private sector
The G7 development finance institutions (DFIs), the IFC, the private sector arm of the African Development Bank, EBRD, and the EIB yesterday announced that they were committed to investing $80 billion in the private sector over the next five years to support sustainable economic recovery and growth in Africa.
The Covid-19 pandemic has caused a severe global economic and health crisis. The announcement is a welcome boost to support the long-term development objectives of African economies that have been negatively impacted by the Covid-19 pandemic. It is the first time the G7 DFIs 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 $425 billion between now and 2025 to help strengthen the pandemic response spending and reduce poverty in the region.
“Under President Biden’s leadership, investing more in Africa is a top priority for DFC in fulfilling our development mandate,” said David Marchick, chief operating officer of U.S. International Development Finance Corporation (DFC). “DFC is proud to be doubling down on our commitment to Africa alongside our G7 and multilateral partners and will continue to prioritise investments in vaccine manufacturing, Covid-19 response, climate mitigation and adaptation, and gender equity on the African continent.”
The G7 DFI group consists of CDC, Proparco (France), JICA and JBIC (Japan), DFC (US), FinDev Canada (Canada), DEG (Germany) and CDP (Italy). This commitment is also supported by the IFC, the African Development Bank, the European Bank for Reconstruction and Development and the European Investment Bank.
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