Africa Investment Forum: Development Financial Institutions pledge joint effort to ramp up investment into Africa
Major Development Finance Institutions (DFIs) have agreed to join forces to help boost private investments in developing economies, particularly those in Africa. The commitment was made by high-profile representatives from development finance institutions in Europe, Africa and Asian at the Africa Investment Forum, in Johannesburg.
“We need to be bold, innovative, and cooperative. We have a number of project preparation facilities that we need to scale up significantly so that we can tap into it. We should not forget that capital is not moving into a lot of the low-income fragile states, we need to find a way to de-risk investments in those particular areas,” Akinwumi Adesina, President of the African Development Bank said.
The session on "Development finance institutions: Doing more together” comprised Akinwumi Adesina, President of the African Development Bank; Sir Suma Chakrabarti, President of the European Bank for Reconstruction and Development; Ambroise Fayolle, Vice-President of the European Investment Bank; Nobumitsu Hayashi, Deputy Governor of the Japan Bank for International Cooperation. Other panelists were Jin Liqun, President of the Asian Infrastructure Investment Bank; Bandar M. H. Hajjar, President of the Islamic Bank; Prof. Benedict Oramah, President of the Africa Export-Import Bank; Sidi Ould Tah, Director General Arab Bank for Economic Development in Africa (BADEA); Sinthya Roesly, Chairwoman, Indonesia Eximbank and Sergio Pimenta, Vice President of the International Finance Cooperation.
Panelists shared their institutions’ experience in catalyzing private sector investments and reshaping their roles to address developing countries’ pressing financing needs. They also discussed joint actions with partner institutions to attract private funding and how private investors can take advantage of what DFIs have to offer.
On how to move from millions to trillions in funding, they offered solutions including having the private sector mindset and going to the extra mile in terms of thinking about instruments. “The private sector means deals are being structured in a way they suit project end,” they indicated.
It is important for the board who are represented by government officials to think outside the box. It does not help if the mindset of the board or the management is fixed on practices that have been done for the last half century or several decades, they added.
“Multilateral development institutions should be innovative, we should be creative. We have to be fast. We should work together and compare notes to see how we can work together and be more efficiently and cost effectively.
The Africa Investment Forum is an initiative of the African Development Bank organized in partnership with Africa Export-Import Bank, African Finance Corporation, Africa50, Development Bank of Southern Africa, European Investment Bank, Islamic Development Bank and Trade and Development Bank.
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