The President of the African Development Bank (AfDB), Dr. Sidi Ould Tah, has announced plans to introduce a Pan-African Financial Coordination Platform aimed at strengthening collaboration among African financial institutions and ensuring that capital deployed across the continent yields greater development impact. His announcement followed an intensive consultative meeting with regional development finance institutions, held shortly after the AfDB concluded a similar engagement with African securities exchanges. Both meetings form part of the Bank’s broader effort to gather sector-wide insights as it prepares the framework for the new platform. According to Ould Tah, African countries face substantial financing needs that can only be met through deeper cooperation among development finance institutions. He stressed that regional DFIs, which often operate closer to the communities and sectors that require support, need stronger balance sheets and more reliable capital structures to fulfill their mandates effectively.
As part of the initiative, Ould Tah explained that a technical task force will be established to examine key challenges identified during the consultations. These challenges include the need to strengthen equity buffers, reduce risk exposure, improve access to long-term concessional financing, and enhance liquidity support mechanisms for DFIs across the continent. He also noted that further engagements with private-sector leaders and global credit rating agencies have been scheduled for mid-December in London, immediately after the conclusion of the 17th replenishment of the African Development Fund. These discussions are expected to shape the final structure of the coordination platform and build confidence in its potential to improve Africa’s financial ecosystem.
Senior executives from key regional development finance institutions participated in the meeting with the AfDB, including representatives from the ECOWAS Bank for Investment and Development, the Eastern and Southern African Trade and Development Bank, the West African Development Bank, Shelter Afrique and the Africa Finance Corporation. Admassu Tadesse, President of the Eastern and Southern African Trade and Development Bank, emphasised the urgent need for stabilisation mechanisms that can help DFIs withstand macroeconomic shocks. He proposed the creation of a standby liquidity facility and the use of callable capital guarantees as tools capable of lowering financing costs and amplifying development outcomes. Tadesse noted that multilateral development banks like the AfDB already possess such instruments and could play a catalytic role in helping DFIs achieve greater financial resilience.
Serge Ekue, President of the West African Development Bank, highlighted the rising political instability across parts of West Africa and its adverse effect on the credit ratings of regional financial institutions. He stressed that the AfDB’s strong AAA credit rating is crucial for anchoring market confidence and helping to stabilise financing conditions across the region. Ekue also expressed the need to clarify institutional roles and avoid duplication of mandates to ensure that development resources are used efficiently. He described regional DFIs as organisations that are “small enough to care, but big enough to execute,” underscoring the importance of maintaining their agility while scaling their impact.
Dr. George Donkor, President of the ECOWAS Bank for Investment and Development, underscored the importance of closer cooperation and stronger alignment among African financial institutions. He argued that increased co-lending, loan syndication and joint project financing would enable larger DFIs to support smaller ones, thereby broadening Africa’s overall development financing capacity. Donkor noted that such collaboration would also enhance the ability of DFIs to fund larger regional projects and mobilise more private capital.
The AfDB’s renewed focus on coordination comes at a time when the institution is taking significant steps to strengthen Africa’s infrastructure and economic resilience. Just last week, the Bank approved a $100 million loan to the Emerging Africa and Asia Infrastructure Fund to support sustainable infrastructure growth across the continent. According to the Bank, the financing package is intended to unlock additional private sector capital and advance transformative projects in renewable energy, transportation, digital infrastructure and other essential sectors that will drive Africa’s long-term development.
