AfDB, EIB Partner to Boost Investment in Africa
By Adedapo Adesanya
The African Development Bank (AfDB) and the European Investment Bank (EIB) have signed a joint partnership action plan that is aimed at boosting both public and private sector investment in Africa.
The joint action plan enables both institutions to grow a shared pipeline of bankable projects around key complementary themes to which each institution would bring their comparative advantage.
The themes include climate action and environmental sustainability; transformative large-scale quality infrastructure investment; Information and Communication Technology (ICT) infrastructure and services; financial inclusion with a gender lens aimed at the empowerment of girls and women; education and training; and the health sector.
It was emphasised that the signing comes amid the ongoing COVID-19 pandemic which is increasing poverty across the African continent and threatening markets and livelihoods, heightening the urgency for action.
The agreement was signed by AfDB’s Acting Senior Vice President, Ms Bajabulile Swazi Tshabalala, and Mr Thomas Östros, EIB’s Vice President, during a virtual ceremony attended by more than 100 stakeholders from across Africa and Europe.
Speaking on the planned action, Ms Tshabalala noted, “It is crucial that more multinational development banks and other development finance institutions commit to closer and stronger collaboration, such as seen through this Joint Action Plan between the AfDB and the EIB, in order to more efficiently and effectively support our regional member countries during these troubling times.
“Sustainable economic growth and security in regions facing particular challenges, such as the Sahel and Horn of Africa, are our top priority.”
On his part, Mr Östros explained that “Partnerships are crucial for the EIB’s business and impact, and this partnership with Africa’s Bank is crucial for Africa. The Action Plan signed with the African Development Bank today demonstrates the firm commitment of the European Investment Bank, the EU Bank, to delivering investment that makes a real difference to Africa.
“Enhancing our work with the African Development Bank, Africa’s multilateral development bank is a strategic priority for the EIB and Europe. Together the EIB and AfDB will enhance cooperation and engagement with African partners to ensure that Africa emerges from the health, social and economic challenges of COVID-19 to an even brighter 21st Century.
The Joint Action Plan was developed following an EIB delegation meeting with the African Development Bank in February 2020.
The plan reflects the regional bank’s High 5 development priority areas as well as EIB’s priority areas for Africa as the COVID-19 pandemic has led both institutions to devote financing for rapid response to meet budgetary and health needs of countries in the region.
Both institutions have a long history of cooperation, framed by their relationship as Multilateral Development Banks and a Memorandum of Understanding on an Enhanced Strategic Partnership, signed in 2005, between the EIB, the AfDB and the European Commission. They have also signed a Procedural Framework for co-financed public sector projects.
Over the past five years, the shared portfolio of the two institutions has grown to €3.4 billion, leveraging investment totalling €10.2 billion for 26 projects across the continent.
In recent years the EIB and AfDB have jointly supported clean energy, water, transport and private sector projects across the continent, from Morocco in the north, Senegal in the West, Kenya in the East and Zambia in the South, and elsewhere across Africa.
