🤝 A Renewed Alliance for Africa’s Future
The African Development Bank (AfDB) and the Asian Infrastructure Investment Bank (AIIB) have reaffirmed their commitment to Africa’s sustainable economic transformation with a newly signed Memorandum of Understanding (MoU) on June 28, 2025, in Paris.
Signed by AfDB President Dr. Akinwumi Adesina and AIIB President Jin Liqun, the agreement marks a significant upgrade of their 2018 collaboration framework, unlocking more opportunities for joint investments, guarantees, and project financing across the continent.
“This partnership is an effective pathway for economic development,”
— Dr. Akinwumi Adesina, President, AfDB
“AIIB is committed to transformative projects beyond Asia,”
— Jin Liqun, President, AIIB
🚀 Six Strategic Pillars of the AfDB-AIIB Pact
The renewed partnership focuses on six high-impact areas that are vital for Africa’s transformation:
🌿 1. Green Infrastructure
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Supports AfDB’s ambitious “Mission 300” to provide electricity to 300 million Africans by 2030 through sustainable energy sources.
🏭 2. Industrialization
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Mobilizes private capital via public-private partnerships to develop manufacturing zones and tech innovation hubs.
💰 3. Private Capital Mobilization
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De-risks investments and creates favorable environments for domestic and international financiers to invest in African infrastructure.
🌍 4. Cross-Border Connectivity
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Funds transport and digital infrastructure corridors to enhance trade and logistics across the African Continental Free Trade Area (AfCFTA).
💻 5. Digitalization
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Expands access to digital financial services, supports e-government platforms, and bolsters ICT education and inclusion.
🏦 6. Policy-Based Financing
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Provides budget support and macroeconomic stability through co-financed reforms that align with national development plans.
💡 Case Study: Egypt’s Historic Sustainable Panda Bond
One notable success from the partnership was the co-financing of Egypt’s RMB 3.5 billion Sustainable Panda Bond in 2023. This was:
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Africa’s first sovereign bond in China’s interbank market
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Enabled by AfDB and AIIB’s AAA-rated guarantees
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Delivered competitive financing terms and opened the door to new capital sources
This case underscores the power of collaborative de-risking in mobilizing sustainable finance for African governments.
📈 Strategic Alignment and Broader Impacts
The new deal aligns with AfDB’s 2024–2033 strategic vision and complements emerging economic reforms across Africa, including Ghana’s digital finance initiatives under President John Dramani Mahama.
With infrastructure investments surging and climate resilience becoming a central priority, this partnership is poised to reshape Africa’s development landscape.
Source: https://www.newsghana.com.gh