The African Development Bank and the European Bank for Reconstruction and Development have signed a Memorandum of Understanding to promote sustainable private sector development in Africa.

On Monday, a statement from the AfDB said the MoU would catalyse new sources of financing to help bridge the $2.5 trillion annual financing gap for development in Africa.

It added that to bridge the gap, development finance institutions needed to work in partnership.

The bank noted that both institutions would capitalise on their expertise and experiences, focusing on climate change, green and resilient infrastructure, and capital market development.

It also noted that both institutions would improve business environments, bolstering the real economy and mobilising private sector investment.

The statement disclosed that Akinwumi Adesina, President of the AfDB, said the new partnership would pave the way for both institutions to do more.

“The impact of COVID-19 on government resources is huge, and we need to mobilise more private resources to help African countries build back stronger,” said the statement.

Also, the President of the EBRD, Odile Renaud-Basso, said the pandemic had made more urgent the need for better and closer collective action.

“Collaboration between the EBRD and the African Development Bank has grown from strength to strength over the years in the region.

“This partnership will allow our institutions to do even more to promote sustainable private sector development in North Africa,” it noted.

The new partnership will enable the two institutions to strengthen the potential for joint projects and unlocking investment opportunities in their countries of operations.

(NAN)