Press Release: G7 Development Finance Institutions and Multilateral Partners to Invest over $80 Billion into African Businesses over the Next Five Years
The G7 DFIs, the IFC, the private sector arm of the African Development Bank, EBRD, and the EIB today announced that they were committed to investing $80 billion in the private sector over the next five years to support sustainable economic recovery and growth in Africa.
The Covid-19 pandemic has caused a severe global economic and health crisis. The announcement is a welcome boost to support the long-term development objectives of African economies that have been negatively impacted by the Covid-19 pandemic. It is the first time the G7 DFIs have come together to make a collective partnership commitment to the African continent.
The IMF estimates that sub-Saharan Africa needs additional financing of around $425 billion between now and 2025 to help strengthen the pandemic response spending and reduce poverty in the region.
Under President Biden’s leadership, investing more in Africa is a top priority for DFC in fulfilling our development mandate,” said David Marchick, Chief Operating Officer of U.S. International Development Finance Corporation (DFC). “DFC is proud to be doubling down on our commitment to Africa alongside our G7 and multilateral partners and will continue to prioritize investments in vaccine manufacturing, COVID-19 response, climate mitigation and adaptation, and gender equity on the African continent.
Each DFI has its own investment criteria which are aligned to an assessment of need to achieve development impact across a range of sectors. DFIs play an important role in helping to build markets, mitigate risk and pave the way for other investors to enter new markets.
DFC, the United States International Development Finance Institution, is committed to supporting private sector investment throughout Africa—from Senegal to Nigeria, Kenya to Mozambique, and other emerging economies across the continent. At this particular moment, we are particularly focused on supporting vaccine manufacturing in Africa for Africa. Africa holds significant untapped potential that can be unlocked through development finance to help build more prosperous and stable communities. The region is home to the world’s fastest-growing population. Many economies are adopting market-based reforms, and there are significant financing gaps that represent opportunities for investors. DFC is using its tools to help businesses pursue promising opportunities that improve lives throughout Africa, including through increasing electricity access, expanding renewable energy, providing capital for MSMEs, and investing in women.
The G7 DFI group consists of CDC, Proparco (France), JICA and JBIC (Japan), DFC (US), FinDev Canada (Canada), DEG (Germany) and CDP (Italy). This commitment is also supported by the IFC, the Africa Development Bank, the European Bank for Reconstruction and Development and the European Investment Bank.
Photo courtesy of World Bank Photo Collection.