Harare – The G7, the International Finance Corporation, the African Development Bank’s EBRD and the European Investment Bank have committed to investing US$80 billion in the private sector over the next five years to support sustainable economic recovery and growth in Africa.
This week, UK Minister for Africa James Duddridge said: “The UK is proud to back this commitment by world leaders at the G7 Summit to invest more than US$80 billion in Africa’s private sector over the next five years. 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.”
Economic analysts highlighted that the commitment came at a time Africa really needed such support.
AfDB vice-president Mr Solomon Quaynor said: “We welcome this global partnership and the opportunity to provide the African voice, as Africa builds back better and boldly. The opportunity to create jobs particularly for youth and women, from a focus on industrialising Africa underpinned by the African Continental Free Trade Area, will be our priority.
“Given the gap between the IMF estimates and what this partnership is committing to, we will seek to crowd-in African development partners, as well as African savings from SWFs (sovereign wealth funds), pensions, and insurance pools, estimated to have US$1.8 trillion.”
The president of the European Investment Bank, Mr Werner Hoyer, added that: “the EIB welcomes G7 leadership to enhance support for high-impact investment across Africa during and after the pandemic. Last year the EU Bank’s engagement in Africa, as part of Team Europe, represented the largest ever support for climate action and investment in fragile states in 55 years of EIB operations on the continent. We stand ready to co-operate further with African and multilateral partners to tackle both COVID-19 and accelerate the green transition in Africa.”
And IFC managing director Mr Makhtar Diop said: “Ensuring an inclusive and sustainable recovery for people, businesses and economies across Africa in coordination with our development partners, is at the core of IFC’s development mandate today.
“We know that the private sector will play a major role in financing Africa’s future by creating millions of jobs that are essential to ensuring sustained economic growth and poverty reduction. We therefore welcome this important partnership and are proud to provide financing and to work with partners to help create the right conditions to bring more private investment to Africa.”