Multilateral Development Banks, levers for inclusive and sustainable growth | African Development Bank

African countries generally turn to bilateral and multilateral partners for their development finance mechanisms. These facilities offer greater benefits to African countries, especially those offered on concessional terms.

To maximize resources, the continent’s leaders have agreed to pool development resources at the regional level, including from regional multilateral development banks. This could promote more inclusive and sustainable growth for developing countries.

Given their geographic and cultural proximity, regional multilateral development banks have a better understanding of the critical needs of recipient countries. This understanding enables them to roll out the right tools based on the specific needs of countries, including their socio-economic and environmental specificities. Pooling resources at the regional level thus promotes efficient deployment and contributes to inclusive and sustainable growth. This synergy strengthens the coherence of actions and facilitates the implementation of projects on a regional scale.

By making use of regional multilateral development banks, developing countries also become part of the decision-making process regarding the use of resources. Their active participation promotes ownership of projects and increases their impact on inclusive and sustainable growth.

The African Development Bank, Africa’s most important partner

The African Development Bank is an excellent example of the effectiveness of pooling resources at a regional level. By financing projects in infrastructure, energy, agriculture and education, the bank contributes to the achievement of the United Nations Sustainable Development Goals (SDGs) in Africa and the African Union’s 2063 Agenda through its ‘High 5’ strategic priorities. For example, by supporting the development of renewable energy and investing in agricultural research, the Bank helps to secure sustainable economic growth and reduce poverty.

However, achieving such pooling of resources will require addressing some of the challenges facing countries. For example, the Bank has provided institutional and technical capacities to Member States and regional organisations. This ensures better management of pooled resources and more effective implementation of development projects.

In particular, the Bank focuses on transparency, accountability and stakeholder involvement to ensure ethical and efficient use of resources. The Bank Group is committed to promoting regional integration by financing transnational projects and encouraging cooperation between Member States. This makes it possible to pool development benefits and reduce the risks associated with economic differences between countries.

In line with these commitments, the Bank Group has dedicated its 2023 annual meetings to bringing together the continent’s leaders and development partners to explore how to mobilize private sector climate finance, both internally and internationally, to support green growth. The meetings, scheduled for May 22-26, will take place in Sharm El Sheikh, Egypt.