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Boosting private sector Investments
The Bank supports the transformation of the continent by boosting private sector investments as an engine of sustainable economic shared and sustainable growth, employment and poverty reduction.
Education and health sectors are underfinanced in Africa and do not respond to the needs of a growing population and rising urbanization. African continent utilize less than 50% of human capital resources for the economic growth as compared to global average of 62%. The sector is primarily funded by public expenditure, foreign aids and multilateral institutions. To address the need of the continent, more private sector investments and public private partnerships are required to increase access and quality of education and health services with a direct effect on economic productivity and job creation.
The Bank therefore supports private sector investments in education and health by providing debt, guarantees, subordinated debt, and equity to enterprises located or incorporated in regional member countries, majority owned by private sector investors (African or non-African): https://www.afdb.org/en/topics-and-sectors/sectors/private-sector/