African Development Bank and Private Infrastructure Development Group Collaborate to Mobilize Local Currency Capital

The African Development Bank Group has partnered with the Private Infrastructure Development Group to unlock long-term local currency capital for energy, infrastructure, industrialization, housing, and other productive sectors across Africa. The agreement aims to develop de-risking and credit enhancement solutions to tap into Africa's vast pool of domestic capital, estimated at over $2 trillion. This initiative takes on added urgency amid ongoing global economic and political uncertainty, building on successful joint work in Nigeria and East Africa through Infracredit Nigeria and the Dhamana Guarantee Company.

Key Takeaways:

• The African Development Bank Group and the Private Infrastructure Development Group have agreed to work together to mobilize local currency capital for Africa's productive sectors.
• The collaboration aims to develop de-risking and credit enhancement solutions to tap into Africa's vast pool of domestic capital, estimated at over $2 trillion.
• The partnership is focused on scaling proven credit enhancement models that unlock long-term local currency financing and deepen capital markets across the continent.
• The agreement aligns with the African Development Bank's new Ten-Year Strategy (2024-2033) to transform African economies and drive infrastructure development, industrialization, and resilient economic growth in Africa.
• The two institutions are building on successful joint work in Nigeria and East Africa through Infracredit Nigeria and the Dhamana Guarantee Company.
• The partnership is crucial to obtaining greater access to local finance and accelerating inclusive growth and infrastructure development in Africa.
• Vice President Solomon Quaynor emphasized the African Development Bank's focus on making Africa's capital work better for Africa's development, while Chief Executive Officer Philippe Valahu hailed the partnership as a significant milestone in scaling proven credit enhancement models.

Statistics:

• Africa's pool of domestic capital is estimated at over $2 trillion.
• The African Development Bank's new Ten-Year Strategy (2024-2033) aims to drive infrastructure development, industrialization, and resilient economic growth in Africa.
• The partnership is focused on scaling proven credit enhancement models that unlock long-term local currency financing and deepen capital markets across the continent.

Sources:

• African Development Bank Group.