Abidjan- Eight development finance institutions have formally launched the African Financing Partnership (AFP) that will enable greater cooperation and co-financing development projects across the continent.
The partnership that was launched on Wednesday at the ongoing African Development Bank (AfDB) annual meetings will target financing of large-scale projects in infrastructure and industrial sectors leading to economic growth and job creation.
Speaking during the launch, Dr. Donald Kaberuka, the President of the AfDB noted that during this year the target for collaborative co-financing is manifold, including financing projects in sectors such as infrastructure, power, renewable energy and agribusiness.
In 2009, Kaberuka underscored that development finance institutions worked collaboratively on projects in Africa, including Main One Cable in Nigeria, to jointly finance over $1 billion in projects under partnership models.
“Last year, the AFP was a coordinating platform for the Joint IFI/DFI Action Plan to respond to the financial crisis in Africa and with a target mobilisation of $15 billion,” he said.
Smaller innovative projects as well as investments in financial services, including SME and microfinance projects may also be considered under the partnership.
In practice the AFP will enable one institution to coordinate on behalf of the others, as lead promoting partner, and propose involvement of other institutions.
“There is an evident need for partnerships amongst development finance institutions, for efficient utilization of our human and capital resources to meet vast financing needs of private sector projects in Africa,” said Tim Turner, AfDB’s Private Sector Director.
The bank’s private sector operations last year hit $2 billion for 32 projects in Africa.
The eight development finance institutions include; Development Bank of Southern Africa, Deutsche Investment Institution and European Investment Bank.
They also include Netherlands Development Finance Company FMO, Industrial Development Corporation of South Africa, IFC, Promotion et Participation pour la Coopération économique (Proparco) and AfDB.