African Development Bank and Asian Infrastructure Investment Bank Strengthen Collaboration for Sustainable Economic Development

Strategic Insights -

The African Development Bank and the Asian Infrastructure Investment Bank (AIIB) have signed a Memorandum of Understanding (MOU) to strengthen their collaboration on sustainable economic development, aiming to boost infrastructure development and economic opportunities across the African continent. The MOU, signed on June 28, 2025, builds on an earlier agreement in 2018 and outlines continued collaboration in six priority areas. This partnership aims to provide economic development for African member countries, especially in infrastructure, and to promote co-financing, co-guaranteeing, and other forms of joint participation in financial assistance for development projects.

Key Takeaways:

  • The African Development Bank and AIIB signed a Memorandum of Understanding (MOU) on June 28, 2025, to strengthen their collaboration on sustainable economic development for Africa.
  • The MOU outlines continued collaboration in six priority areas: green infrastructure, industrialization, private capital mobilization, cross-border connectivity, digitalization, and policy-based financing.
  • The partnership aims to promote co-financing, co-guaranteeing, and other forms of joint participation in financial assistance for development projects primarily in sustainable infrastructure.
  • The African Development Bank and AIIB cooperated on providing guarantees to support the issuance of Egypt's first Sustainable Panda Bond in 2023, valued at RMB 3.5 billion.
  • The guarantees provided by the two triple-A-rated multilateral banks were instrumental in de-risking the transaction, enabling Egypt to secure competitive terms and attract investor confidence.
  • The partnership is expected to continue to be an effective pathway to provide economic development for African member countries, especially in infrastructure.
  • The African Development Bank and AIIB aim to boost energy access by accelerating Mission 300, targeting to connect 300 million people to electricity by 2030.

Statistics:

  • RMB 3.5 billion: The value of Egypt's first Sustainable Panda Bond, issued with guarantees from the African Development Bank and AIIB in 2023.
  • 300 million: The number of people targeted to be connected to electricity by 2030 through Mission 3030, accelerated by the African Development Bank and AIIB's collaboration.
  • 6: The number of priority areas outlined in the MOU, including green infrastructure, industrialization, private capital mobilization, cross-border connectivity, digitalization, and policy-based financing.
  • 2023: The year when the African Development Bank and AIIB provided guarantees to support the issuance of Egypt's first Sustainable Panda Bond.
  • 28 June: The date when the MOU was signed between the African Development Bank and AIIB.

Sources:

  • M2 PressWIRE-June 30, 2025-: African Development Bank, Asian Infrastructure Investment Bank (AIIB) sign Memorandum of Understanding (MOU) renewing their collaboration on sustainable economic development for Africa