Sub-regional development banks urged to scale up financing to accelerate Africa’s development
The role of sub-regional multilateral development banks (MDBs) in advancing Africa’s development objectives took center stage during a high-level panel discussion held on the sidelines of the Fifty-Seventh Session of the Economic Commission for Africa (ECA) Conference of African Ministers of Finance, Planning, and Economic Development (COM2025). The event, convened under the theme “The Role of Sub-Regional Multilateral Development Banks in Delivering on Africa’s Development Objectives,” brought together policymakers, economists, and financial leaders to assess how MDBs can enhance their capacity to mobilize resources, attract private sector investment, and strengthen their contribution to regional integration and economic transformation.
The session featured interventions from Ms. Hanan Morsy, Chief Economist and Deputy Executive Secretary of ECA; Mr. Admassu Tadesse, President and CEO of the Trade and Development Bank; and Ms. Fatima Elsheikh, Secretary General of the Arab Bank for Economic Development in Africa (BADEA). The panel, moderated by Hopestone Chavula, Chief a.i of the Macroeconomic Analysis Section of the ECA, explored solutions to the persistent financing constraints faced by MDBs, as well as opportunities to expand their role in supporting the implementation of the African Continental Free Trade Area (AfCFTA) and broader sustainable development initiatives.
In her remarks, Ms. Hanan Morsy underscored the critical role of sub-regional MDBs in bridging Africa’s financing gap and addressing structural barriers to economic growth. She emphasized that MDBs must be empowered to mobilize long-term resources and provide more affordable financing to African economies, particularly in light of the tightening global financial conditions and declining flows of development assistance.
She further highlighted the need for reforming the global financial architecture to create a more equitable system that allows African MDBs to access financing on favorable terms. Discussions also focused on the potential of Special Drawing Rights (SDRs) reallocation as a means of strengthening MDBs’ capital base and expanding concessional lending to African countries.
A key aspect of the discussions was the role of MDBs in supporting Africa’s integration agenda, particularly through the implementation of the African Continental Free Trade Area (AfCFTA). Mr. Admassu Tadesse noted that trade-enabling infrastructure remains a major constraint to intra-African trade and industrialization, and MDBs must scale up investments in transport corridors, logistics, energy infrastructure, and digital connectivity to facilitate cross-border trade.
Ms. Fatima Elsheikh reflected on the structural limitations that constrain MDBs from playing a more transformative role in Africa’s development. She pointed to the overwhelming reliance on low-income shareholders, limited callable capital, and the high cost of borrowing as key challenges that must be addressed to enable MDBs to scale up their financing capacity.
The panelists also discussed the need for greater alignment between MDBs and continental development priorities, including Agenda 2063 and the 2030 Agenda for Sustainable Development. They emphasized that MDBs must adopt more agile financing mechanisms and strengthen their partnerships with global development finance institutions to ensure sustainable and inclusive growth across the region.
Distributed by APO Group on behalf of United Nations Economic Commission for Africa (ECA).
