African Investment: AfDB & Bloomberg Boost Private Funding
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African Development Bank and Bloomberg launch Partnership to Drive African Investment
Table of Contents
A new collaboration aims to unlock private sector capital for job creation and sustainable development across the African continent.
Overview
The African Development bank Group (AfDB) and Michael R. Bloomberg, founder of Bloomberg L.P. and Bloomberg Philanthropies, and Chair of the Glasgow Financial Alliance for Net Zero (GFANZ), announced a new partnership on September 24, 2023, to mobilize private sector investment in Africa. the initiative, unveiled during the Bloomberg Philanthropies Global Forum held alongside the 80th UN General Assembly in New York, seeks to boost job creation and overall development African Development Bank Press Release.
Key Objectives and Priorities
The partnership will focus on creating a financial framework that aligns with Africa’s development priorities and terms. Dr.Sidi ould Tah, President of the African Development Bank Group, emphasized the commitment to working closely with the private sector and international partners African Development Bank Press Release.President Ould Tah has identified transforming population growth into an economic engine for job creation, particularly for women and youth, as a key priority since assuming leadership earlier in September 2023.
Bloomberg highlighted the importance of progressive partnerships and collaborative efforts to mobilize resources and unleash investments at scale for Africa’s development African Development Bank Press Release. This collaboration builds on Bloomberg Philanthropies’ existing work in Africa, which includes initiatives in public health, climate change, and urban development.
The Need for Increased Investment in Africa
Africa faces a significant investment gap to achieve it’s sustainable development goals. According to the United Nations Development Program, an estimated $2.4 trillion is needed annually to finance the Sustainable Development Goals in Africa by 2030.Mobilizing private sector capital is crucial to bridging this gap, as official development assistance alone is insufficient.
The AfDB has been a leading advocate for increased private sector investment in Africa. In 2022, the AfDB’s private sector investments totaled $4.3 billion African Development Bank Annual Report 2022. This partnership with Bloomberg is expected to further accelerate these efforts.
Investment Sectors
While specific sectors haven’t been detailed, the partnership is expected to prioritize areas with high potential for job creation and economic growth, including:
- Renewable Energy: Africa has vast