The U.S. International Development Finance Corporation (DFC) and the African Development Bank Group, today signed an agreement to mobilize private capital in support of development in Africa. The Memorandum of Understanding (MOU) was signed on the sidelines of the Africa Investment Forum in Johannesburg, South Africa.
Adam Boehler, DFC Chief Executive Officer said the multitude of urgent development challenges--from infrastructure development to financial inclusion and food security required collaboration with like-minded partners.
"The MOU signed today will help harness the diverse strengths of DFC and the African Development Bank to make tangible progress on our shared goals across the continent," said Boehler. "To tackle the multitude of urgent development challenges facing Africa--from infrastructure development to financial inclusion and food security--collaboration with like-minded partners is essential."
DFC is a new U.S. Government agency that modernizes the Overseas Private Investment Corporation (OPIC).
The agreement is intended to leverage the collective resources of DFC and the Bank to more effectively mobilize private capital to meet mutual development goals in Africa. Through their collaboration, DFC and the Bank will strengthen cooperation on business development, due diligence, and monitoring of jointly supported projects.
African Development Bank president Akinwumi Adesina, who signed on behalf of the Bank said the partners will focus on priority sectors including critical infrastructure, power and energy, financial services and agriculture and prioritize investments that empower the region's women.
"Through these efforts, DFC and the Bank aim to invest a combined $2 billion, with a goal of mobilizing an additional $3 billion from the private sector alongside its investments. Doing so would support total investment of $5 billion in regional development projects. The partners will use debt financing, equity investments, political risk insurance, and other financial tools to meet these goals," he said.
The partners will focus on priority sectors including critical infrastructure, power and energy, financial service and agriculture. They will prioritize investments that empower the region's women. Through these efforts, DFC and the Bank aim to invest a combined $2 billion, with a goal of mobilizing an additional $3 billion from the private sector alongside its investments. Doing so would support total investment of $5 billion in regional development projects. The partners will use debt financing, equity investments, political risk insurance, and other financial tools to meet these goals.
The collaboration will advance a private sector-led model that offers a robust alternative to unsustainable state-led investments that undermine long-term prosperity and stability in Africa.
Boehler is attending the Africa Investment Forum as part of a trip to sub-Saharan Africa to highlight U.S. commitment to the region, explore private sector investment opportunities, and strengthen relationships with key regional partners.
The visit marks Boehler's first official travel to Africa as CEO of DFC, a new U.S. Government agency that modernizes the Overseas Private Investment Corporation (OPIC). Equipped with a more than doubled investment cap of $60 billion and new financial tools, DFC has more resources to invest in priority regions such as Sub-Saharan Africa and expanded flexibility to collaborate with key partners like the African Development Bank.
Contact:
African Development Bank: Amba Mpoke-Bigg, Communication and External Relations Department, email: a.moke-bigg@afdb.org, tel: +225 20 26 53 30
International Development Finance Corporation (DFC): Molly Meiners, email: Molly.Meiners@opic.gov
