Sub-regional development banks urged to scale up financing to accelerate Africa’s development
The role of the subregional Multilateral Development Bank (MDB) in promoting the African Development Goals has taken a central role in the high-level panel discussions held at the fifty-seventh session (ECA) of the Economic Commission for Africa, Minister of Finance of Africa, Planning and Economic Development (COM2025). The event, convened with the “Role of Subregional Multilateral Development Banks in the Achieving of African Development Goals,” brings together policy makers, economists and financial leaders to assess how MDB can enhance its ability to mobilize resources, attract private sector investments, and enhance its contribution to regional integration and economic transformation.
The conference was the intervention of Ms. Hanan Morsy, Chief Economist and Deputy Executive Secretary of ECA; Mr. Admassu Tadesse, President and CEO of Trade and Development Bank; Ms. Fatima Elsheikh, Secretary-General of the Arab Bank of Africa (BADEA). The panel chaired by Chief AI Hopestone Chavula of ECA’s Macroeconomic Analysis Section explores solutions to the ongoing financing restrictions faced by MDBS and expands its opportunities to support the African Continental Free Trade Area (AFCFTA) and the broader sustainable development.
In his speech, Ms. Hanan Morsy emphasized the critical role of subregional MDB in bridging the financing gap in Africa and addressing structural barriers to economic growth. She stressed the need to authorize the MDB to mobilize long-term resources and provide more affordable financing to African economies, especially given the tightening of global financial situation and the decline in flows of development assistance.
She further highlighted the need to reform the global financial system to create a more equitable system that allows African MDBs to obtain financing on favorable terms. The discussion also focused on the potential of the reallocation of Special Painting Rights (SDRs) as a means to strengthen the capital base of MDBS and expand preferential loans to African countries.
A key aspect of the discussion is the role of MDB in supporting the African convergence agenda, especially through the implementation of the African Continental Free Trade Area (AFCFTA). Mr Admassu Tadesse pointed out that strengthening trade infrastructure remains a major restriction on intra-Africa trade and industrialization, and MDB must expand investment in transport corridors, logistics, energy infrastructure and digital connectivity to facilitate cross-border trade.
Ms. Fatima Elsheikh reflects structural restrictions that limit MDB to play a more transformative role in African development. She noted that the high reliance on low-income shareholders, limited retrieval capital, and borrowing costs are the main challenges that must be addressed to enable MDB to expand its financing capabilities.
The panel members also discussed the need for a more aligned relationship between the MDB and mainland development priorities, including the 2063 Agenda and the 2030 Agenda for Sustainable Development. They stressed that MDB must adopt more agile financing mechanisms and strengthen partnerships with global development financial institutions to ensure sustainable and inclusive growth across the region.
Issued by Apo Group on behalf of the United Nations Economic Commission for Africa (ECA).
