The Economic Commission for Africa (ECA) has emphasized the urgent need to strengthen sub-regional multilateral development banks (MDBs) to enhance their ability to mobilize long-term financing and support Africa's economic growth.
Speaking at the 57th Session of the ECA Conference of African Ministers of Finance, Planning, and Economic Development (COM2025) in Addis Ababa, ECA's Chief Economist and Deputy Executive Secretary, Hanan Morsy, highlighted the critical role of MDBs in providing affordable financing for infrastructure and development projects.
With tightening global financial conditions and declining development aid, panelists at the conference explored ways to bolster MDBs' resource mobilization, attract private investments, and support regional economic transformation.
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Admassu Tadesse, President and CEO of the Trade and Development Bank, stressed the need for increased investment in trade and infrastructure, particularly under the African Continental Free Trade Area (AfCFTA).
Similarly, Fatima Elsheikh, Secretary-General of the Arab Bank for Economic Development in Africa (BADEA), noted key challenges, including MDBs' reliance on low-income shareholders and high borrowing costs.
Experts called for reforms in the global financial system, including reallocating Special Drawing Rights (SDRs) to boost MDBs' capital base, aligning financing strategies with Africa's Agenda 2063 and the UN's 2030 SDGs, and fostering deeper collaboration with global financial institutions to close Africa's funding gap.
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