DFC and African Development Bank partner to support development in Africa

AFRICA – Adam Boehler, Chief Executive Officer of the U.S. International Development Finance Corporation (DFC), and Akinwumi Adesina, President of the African Development Bank Group, signed a memorandum of understanding (MOU) strengthening collaboration in support of development in Africa.

The MOU was signed at the Africa Investment Forum in Johannesburg, South Africa and is intended to leverage the collective resources of DFC and the African Development Bank to more effectively mobilize private capital to mutual development goals in Africa.

Through their collaboration, DFC and the African Development Bank will strengthen cooperation on business development, due diligence, and ongoing monitoring of jointly supported projects.

The collaboration will advance a private sector-led model that offers a robust alternative to unsustainable state-led investments that undermine long-term prosperity and stability in Africa.

“To tackle the multitude of urgent development challenges facing Africa, from infrastructure development to financial inclusion and food security, collaboration with like-minded partners is essential,” said Boehler.

“The MOU signed today will help harness the diverse strengths of DFC and the African Development Bank to make tangible progress on our shared goals across the continent.”

Mr Adesina said, “The partners will focus on priority sectors including critical infrastructure, power and energy, financial services, and agriculture, and prioritize investments that empower the region’s women.

“Through these efforts, DFC and the Bank aim to invest a combined US$2 billion, with a goal of mobilizing an additional US$3 billion from the private sector alongside their investments.

“Doing so would support total investment of US$5 billion in regional development projects. The partners will use debt financing, equity investments, political risk insurance, and other financial tools to meet these goals,” said Adesina.

The United States International Development Finance Corporation (USIDFC or DFC) is an executive agency of the United States federal government responsible for providing foreign aid through the financing of private development projects.

Its creation was mandated by the Better Utilization of Investments Leading to Development (BUILD) Act of 2018, which was signed into law by President Donald Trump on October 5, 2018.

The DFC consolidates the Development Credit Authority (DCA) of the United States Agency for International Development (USAID) with the Overseas Private Investment Corporation (OPIC), providing US$60 billion in loans, loan guarantees, and insurance to U.S. companies that invest or operate in developing nations.

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