G7 Development Finance Institutions and other multilateral agencies have come together to invest $80bn in the private sector over the next five years to speed up sustainable economic recovery and growth in Africa Post COVID-19.
The partners made up of G7 Development Finance Institutions, the IFC, the private sector arm of the African Development Bank, EBRD and the European Investment Bank made this known in a joint statement on Monday.
The G7 countries are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
They said this in a statement, titled ‘G7 Development Finance Institutions and multilateral partners to invest over $80bn into African businesses over the next five years’.
They pointed out that COVID-19 pandemic had caused a severe global economic and health crisis, and that they will be supporting the long-term development objectives of African economies that had been negatively impacted by the crisis.
“It is the first time the G7 DFIs have come together to make a collective partnership commitment to the African continent,” it stated.
According to the statement, the IMF estimated that sub-Saharan Africa needed additional financing of around $425billion between now and 2025 to help strengthen the pandemic response spending and reduce poverty in the region.
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The UK Minister for Africa, James Duddridge, said, “The UK is proud to back this commitment by world leaders at the G7 Summit to invest more than $80bn in Africa’s private sector over the next five years.”
“This investment will create jobs, boost economic growth, help tackle climate change and fight poverty. It comes at a crucial time as the continent rebuilds its economies, severely impacted by Covid-19.”
The CEO of CDC Group, Nick O’Donohoe, stated that high quality capital that DFIs provide is urgently needed if African economies were to start to rebuild quickly from the impact of the pandemic.
Also, the President of the European Investment Bank, Werner Hoyer, said. “The EIB welcomes G7 leadership to enhance support for high-impact investment across Africa during and after the pandemic. We stand ready to cooperate further with African and multilateral partners to tackle both COVID-19 and accelerate the green transition in Africa.”
The IFC’s Managing Director, Makhtar Diop, said, “Ensuring an inclusive and sustainable recovery for people, businesses and economies across Africa in coordination with our development partners, is at the core of IFC’s development mandate today.
“We know that the private sector will play a major role in financing Africa’s future by creating millions of jobs that are essential to ensuring sustained economic growth and poverty reduction.”
The Chief Operating Officer of U.S. International Development Finance Corporation (DFC), David Marchick, said, “Under President Biden’s leadership, investing more in Africa is a top priority for DFC in fulfilling our development mandate.
“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.”
The Chief Executive Officer of Cassa Depositi e Prestiti (CDP), Dario Scannapieco, said, “Closer collaboration among Development Finance Institutions and multilateral partners is an essential factor in fostering sustainable economic recovery and growth in Africa.”
