- June 15, 2021
- Posted by: adminer
- Category: Finance, International
The G7 Development Finance Institutions (DFIs) have announced a commitment to invest $80 billion in Africa’s private sector, over the next five years, to support sustainable economic recovery and growth in the continent.
A statement by the African Development Bank (AfDB), said the G7 DFIs made the announcement along with the International Finance Corporation (IFC), the private sector arm of the AfDB, the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank.
It is the first time the G7 DFIs have come together to make a collective partnership commitment to the African continent, according to the statement.
Each DFI has its own investment criteria which are aligned to an assessment of need, to achieve development impact across a range of sectors.
DFIs play an important role in helping to build markets, mitigate risks and pave the way for other investors to enter new markets.
The G7 DFI group consists of CDC, Proparco (France), Japan International Cooperation Agency (JICA) and Japan Bank for International Cooperation, DFC (US), FinDev Canada, DEG (Germany) and CDP (Italy).
The UK Minister for Africa, James Duddridge, said the UK was proud to back this commitment by world leaders at the G7 Summit.
“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,” Duddridge said..