The Lusophone Compact has convened its 8th Steering Committee Meeting at the headquarters of the International Finance Corporation (IFC) of the World Bank Group in Washington, D.C. The gathering brought together Deputy Prime Minister of Cabo Verde Dr Olavo Avelino Garcia Correia and governors of all eight member countries - Brazil, Cabo Verde, Equatorial Guinea, Guinea-Bissau, Mozambique, Portugal, and São Tomé and Príncipe.
The meeting, held on 15 April, was convened under the leadership of Marie-Laure Akin-Olugbade, Senior Vice President of the African Development Bank Group, and Ethiopis Tafara, IFC Regional Vice President for Africa.
The meeting reviewed progress achieved under the 2024-2027 Work Program, covering the reporting period from June 2025 to April 2026, and set the strategic course for the Compact's next phase of implementation.
Guarantee Programme extended and first transaction deployed
A defining moment for the Compact was the 12-month extension of the Lusophone Compact Guarantee Programme (LCGP), signed in February 2026, alongside the deployment of its first-ever guaranteed transaction. Cabeólica wind energy expansion in Cabo Verde, has been added to the reference portfolio with 85% principal loan coverage, demonstrating the programme's capacity to crowd in private capital. Three further projects are currently under assessment for inclusion.
International Finance Corporation (IFC) and African Trade Insurance Agency (ATIDI) scaling up operations
The Compact's institutional partners have significantly deepened their engagement across the region. The IFC has expanded its commitments in Lusophone Africa, with $880 million committed in Mozambique, $615 million in Angola, $204 million in Cabo Verde, and $3 million in São Tomé and Príncipe, alongside advisory services active in Guinea-Bissau and Equatorial Guinea. The African Trade Insurance Agency (ATIDI) has provided $3.6 billion in risk insurance to Angola, allocated $762 million to Mozambique, and identified $39.7 billion in market prospects across PALOP countries.
Strong momentum across all pillars
Since its inception in 2019, the African Development Bank has approved a cumulative total of $927.9 million in investments in the Lusophone Africa, known as Portuguese-speaking African countries (PALOPs), During the reporting period alone, the portfolio grew by 26%, rising from $735.6 million to $927.9 million. Three new investment approvals worth a combined $192.35 million were recorded, including projects in Cabo Verde and Mozambique, alongside five new technical assistance projects totaling $42.42 million in new funding, bringing cumulative technical assistance approved across the PALOP region to $88.79 million.
A forward-looking agenda
The Steering Committee endorsed five strategic recommendations to accelerate implementation of the 2024-2027 Work Program: sustaining pipeline development momentum by continuing origination missions building new concept for bankable projects; operationalizing the Lusophone Compact Trust Fund by prioritizing upstream and advisory support by securing formal donor commitments; expanding and diversifying risk mitigation instruments by scaling the Lusophone Compact Guarantee Program and ATIDI's risk mitigation instruments and co-developing innovative solutions to unlock private capital; strengthening partner coordination, monitoring and reporting across all development partners; and deepening collaboration on strategic initiatives and regional corridors including in energy, agribusiness and trade facilitation programmes.
In his closing remarks, Deputy Prime Minister Olavo Avelino Garcia Correia expressed satisfaction with the growing pipeline and positive outlook, emphasizing the need to secure more commitments from partners to the Trust Fund and strengthen risk mitigation instruments, including through Cabo Verde's prospective membership of ATIDI in partnership with the IFC.
He called for a more active role for Brazil within the Compact, geopolitically, and financially, and highlighted priority investments for Cabo Verde in clean energy on Sal Island, tourism infrastructure, and maritime and digital connectivity. He closed by encouraging greater proactivity from PALOP countries and the Bank's Secretariat alike, so that all partners can collectively grow the impact of the Compact.
Ethiopis Tafara, the IFC's Regional Vice President for Africa, stressed the importance of acting quickly, working at scale, and making a real impact. He pointed to the program as a strong example of South-South and triangular cooperation, bringing together Brazil, Portugal, and the six Lusophone African countries.
African Development Bank Senior Vice President and Chair of the 8th Steering Committee meeting praised the program's secretariat, headed by Neima Ferreira, for its achievements during the reporting period and encouraged everyone involved to stay bold and engaged. "Ongoing commitment is key to reaching the Compact's full potential and turning it into a driver of positive change in the region. By working together with a shared vision, the Program aims to keep supporting prosperity and resilience in private sector development, creating sustainable jobs for youth and women," she said.
About the Lusophone Compact
The Lusophone Compact is a tripartite development partnership led by the African Development Bank Group, bringing together the Government of Portugal, Portuguese-speaking African countries (PALOPs), and Brazil. Established in 2018, the Compact mobilises investment, technical assistance, and risk-mitigation instruments to accelerate private-sector-led growth across Lusophone Africa. The program aligns with Bank Group leadership's four cardinal points, particularly by promoting enhanced access to capital: Mobilising Africa's financial resources, including strengthening partnerships to bridge the continent's financing gap. Website: https://www.afdb.org/en/compacto-lusofono
