DFC and African Development Bank Partner to Support Development in Africa
November 12, 2019
Sign MOU strengthening collaboration to advance shared goals across the continent
JOHANNESBURG – Adam Boehler, Chief Executive Officer of the U.S. International Development Finance Corporation (DFC), today joined Akinwumi Adesina, President of the African Development Bank Group, to sign 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.
“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.”
“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 $2 billion, with a goal of mobilizing an additional $3 billion from the private sector alongside their investments. Doing so would support total investment of $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 MOU 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.
Boehler is attending the Africa Investment Forum during a trip to Sub-Saharan Africa to highlight U.S. commitment to the region, explore private sector investment opportunities, and strengthen relationships with key regional partners. Boehler will also travel to Ethiopia before returning to Washington.
The visit marks Boehler’s first official travel to Africa as CEO of DFC, a new U.S. Government agency that modernizes the Overseas Private Investment Corporation (OPIC). Equipped with a more than doubled investment cap of $60 billion and new financial tools, DFC has more resources to invest in priority regions such as Sub-Saharan Africa and expanded flexibility to collaborate with key partners like the African Development Bank.
The U.S. International Development Finance Corporation (DFC) is America’s development bank. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. Working together with businesses, we invest in projects that create jobs and opportunity in emerging markets, including building critical infrastructure, expanding access to telecommunications, and providing small business financing, notably for women entrepreneurs. DFC helps to advance America’s foreign policy by partnering on projects that create economic stability, protect sovereignty, and ensure transparency. DFC investments adhere to high principles and respect the environment, human rights, and worker rights.