“The AFP Secretariat is not only an important commitment by the Bank, but the right commitment…. Our partners are very important to us… It is important that we achieve this harmonization across DFIs and we wish to be instrumental in this initiative,” says AfDB African Financing Partnership Coordinator, Preeti Sinha.
Question: The Bank Group’s private sector department has done a great job, convincing other DFIs to reach an agreement on the African Finance Partnership (AFP). How significant is the signing of a MOU to the AfDB?
Answer: The African Development Bank is a premier development finance institution in Africa. As we focus on our mission to help reduce poverty in Africa and mobilize resources for private sector development on the continent, we want to bring together other DFI partners with a similar mission so that we can deliver further results with our combined efforts.
The African Financing Partnership (AFP) is a collaborative co-financing platform for DFIs financing private sector projects in Africa. By signing the MOU, the Bank is providing its full support to partnerships for private sector development with relevant institutions in Africa. The MOU endorses our view to improve efficiency across multilateral and bilateral financing institutions; achieving best practices, reducing cost and “doing more with less”.
Question: To what extent is the African Financing Partnership an answer to socio-economic development?
Answer: The private sector has an increasing role in achieving sustainable development and poverty alleviation. The AfDB considers private sector development as a major objective of its economic and social development activities.
The African Financing Partnership is a partnership among the DFIs actively financing private sector projects in Africa. By creating collaboration, the AFP is increasing the resources available to finance socio-economic development in Africa. The AFP will further focus on mobilizing private sector capital for investments in Africa. There is immense need to finance infrastructure, industries and entrepreneurs on the continent. Our goal is to leverage more capital to meet these investment needs.
Question: What is your response to those who think hosting the AFP Secretariat is a huge commitment to the Bank?
Answer: In its role as a leading development finance institution in Africa, the AfDB considers it important to have leadership in initiatives that will benefit the continent. As President Kaberuka has rightly stated, “the AFP Secretariat is an important commitment by the Bank – it is the right commitment.”
Given our presence on the continent, we can fulfill the role of a focal point for collaboration among institutions for whom Africa is a priority. Our partners are very important to us and the AFP Secretariat will serve not only the AfDB, but its partners. It is important that we achieve this harmonization across DFIs and we wish to be instrumental in this initiative. We are grateful to the Canadian Trust Fund/CIDA for its commitment to the AFP Secretariat.