Finance in Common Summit urges global development finance institutions to harness collective power to address global poverty
The fifth edition of the Finance in Common Summit (FiCS) concluded on Friday in Cape Town, South Africa, with strong calls for global development finance institutions to work together to address poverty and development challenges. South African Finance Minister Enoch Godongwana led the call.
The summit, which was co-sponsored by the African Development Bank and took place alongside the G20 Finance Ministers' Meeting, was themed "Fostering Infrastructure and Finance for Fair and Sustainable Growth."
Godongwana described the meeting as an unprecedented gathering of key financial players, saying: "Your determination and commitment will change the world. Your determination and will have an impact on global poverty.'
The minister linked the summit's goals to South Africa's development trajectory, highlighting the structural reforms the country had undertaken in the electricity, roads, and port sectors, which have opened new investment opportunities to development partners.
African Development Bank Vice President for Finance and Chief Financial Officer, Hassatou Diop N'Sele—one of several senior officials of the Bank Group at FiCS—represented Bank Group President, Dr. Akinwumi Adesina at a meeting on Wednesday organized by the Council of Europe Development Bank. At the meeting, multilateral development banks reaffirmed a shared commitment to maximize their collective impact.
During the G20 meetings of Finance Ministers and central bank governors, Hassatou Diop N'Sele said, 'We call on G20 nations to enhance financial commitments, especially for the 17 th replenishment of the African Development Fund, to simplify processes for accessing climate finance, and to create enabling policies that facilitate sustainable capital flows to Africa.'
In her various interventions during FiCS, she discussed the innovative financing tools and initiatives launched by the African Development Bank to leverage resources and mobilize the private sector at scale, including the landmark hybrid capital transactions successfully replicated by other development finance institutions and the Africa Investment Forum.
N'Sele emphasized the urgency for philanthropies and foundations to further strengthen their partnerships with multilateral development banks and to fully embrace innovation to amplify their impact. She also recognized the challenges for expanding climate finance in Africa and reflected on such solutions and platforms as the Alliance for Green Infrastructure in Africa, designed to catalyze bankable, greener infrastructure projects at scale and speed.
The African Development Bank delegation highlighted the progress of Mission 300 (https://apo-opa.co/4bolqQE), an initiative to accelerate access to electricity for 300 million Africans by 2030. The Bank, working with the World Bank and other development finance institutions and private sector partners, has committed $18.2 billion to this effort.
Senior leaders of the Bank stressed the need for urgent action. Nnenna Nwabufo, Bank Group Vice President for Regional Development, Integration and Business Delivery, said: "Africa is not looking for aid, we are looking for partnerships.".
She added: "The time for pilot projects that deliver incremental progress is over. We need investments that enable our nations to take ownership of their development, fostering resilience, self-sufficiency, and sustainable growth that benefits both Africa and the global economy."
Solomon Quaynor, the African Development Bank's Vice President for Private Sector, Infrastructure and Industrialization, called for faster implementation of infrastructure projects. "Africa can no longer sustain infrastructure projects that take seven to 10 years to complete - we must accelerate development to deliver within three years, prioritizing green infrastructure," he said.
The African continent needs $2.7 trillion through 2030 to meet its climate action goals, but receives only 3.6% of all global climate finance, despite its minimal contribution to global emissions.
The African Development Bank's Director General for Southern Africa, Leila Mokaddem, emphasized that Africa's green transition must be inclusive. She said: "With 600 million Africans still without electricity, our transition cannot be about climate goals alone. It must be about jobs, industrialization and economic opportunity. The African Development Bank is supporting this vision through its Jobs for Youth in Africa strategy to create 25 million jobs and equip 50 million young Africans with green economy skills by the end of this year.'
The summit achieved several significant breakthroughs in expanding the scope and impact of development financing. Key outcomes included: the endorsement by G20 finance ministers of public development banks' crucial role in international financial architecture; steps toward setting up frameworks to support cultural industries as valid asset classes; and the formation of a coalition between public development banks and civil society to ensure that development finance serves communities.
CEO of Agence Française de Développement and Chair of the Finance in Common Summit Rémy Rioux noted: "We have made tremendous progress in building public development banks as an asset class through innovation, commitment, and shared values. In times of uncertainty and conflict, we are offering a calm, collective alternative."
"This has truly been an African FiCS," said Boitumelo Mosako, CEO of the Development Bank of Southern Africa. He added: "With 34% of delegates coming from the continent, we have shown that Africa is unstoppable as the second fastest growing region in the world."
Following the Finance in Common Summit, the Fourth Finance for Development Conference will take place in Spain between June and July this year. Being organized by the United Nations and the Spanish government, that summit will feature continuing discussions on reshaping the international financial architecture to better serve development needs.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
About the African Development Bank Group:
The African Development Bank Group is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org
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