Global Development Finance Institutions Unite to Address Poverty and Growth at FiCS 2025

Cape Town Summit Calls for Stronger Financial Commitments to Sustainable Development.

The fifth edition of the Finance in Common Summit (FiCS) concluded on Friday in Cape Town, South Africa, with a resounding call for global development finance institutions to work together in addressing poverty and accelerating development efforts. South African Finance Minister Enoch Godongwana led the discussions, emphasizing the role of financial cooperation in shaping a more equitable global economy.

The summit, co-sponsored by the African Development Bank (AfDB), took place alongside the G20 Finance Ministers' Meeting and centered on the theme, "Fostering Infrastructure and Finance for Fair and Sustainable Growth." Minister Godongwana hailed the gathering as a historic moment in global finance, stating: "Your determination and commitment will change the world. Your efforts will impact global poverty in ways we have never seen before."

South Africa’s Development Pathway and Investment Opportunities

During the summit, Minister Godongwana linked the goals of FiCS to South Africa’s own development strategy, highlighting ongoing structural reforms in electricity, transport, and port infrastructure. These initiatives, he noted, are opening new avenues for investment and economic growth, reinforcing the nation’s position as a key player in Africa’s economic transformation.

AfDB Calls for Investment-Driven Development in Africa

African Development Bank Vice President for Finance and Chief Financial Officer, Hassatou Diop N’Sele, represented AfDB President Dr. Akinwumi Adesina at a meeting organized by the Council of Europe Development Bank. She reiterated the commitment of multilateral development banks to maximize their collective impact.

During the G20 meetings of Finance Ministers and central bank governors, N’Sele urged global leaders to:

• Increase financial commitments, particularly for the 17th replenishment of the African Development Fund.
• Simplify access to climate finance for developing nations.
• Develop policies that encourage sustainable capital flows to Africa.

She also highlighted AfDB’s innovative financial mechanisms, including hybrid capital transactions and the Africa Investment Forum, which mobilize resources and attract private sector investment.

Mission 300 and Infrastructure Acceleration for Africa’s Growth

One of the summit’s key highlights was the progress report on Mission 300, an ambitious initiative to provide electricity to 300 million Africans by 2030. The African Development Bank, alongside the World Bank and other financial partners, has committed $18.2 billion to this effort.

Senior AfDB leaders underscored the urgency of the initiative. Nnenna Nwabufo, Vice President for Regional Development, Integration, and Business Delivery, stated: "Africa is not looking for aid; we are looking for partnerships." She called for direct investments that empower African nations to take charge of their development, shifting the focus from small-scale pilot projects to large-scale, transformative initiatives.

Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure, and Industrialization, emphasized the need to accelerate infrastructure development: "Africa can no longer afford infrastructure projects that take seven to ten years to complete. We must shorten this timeframe to three years, with a strong focus on green infrastructure."

Africa’s Green Transition Must Be Inclusive

The urgency for green investments was a dominant theme at FiCS 2025. Africa requires an estimated $2.7 trillion by 2030 to meet its climate goals, yet it currently receives just 3.6% of global climate finance. Leila Mokaddem, AfDB’s Director General for Southern Africa, stressed that Africa’s transition must go beyond climate targets to include economic growth and job creation.

"With 600 million Africans still without electricity, our green transition cannot be solely about climate goals. It must be about jobs, industrialization, and economic opportunities," Mokaddem stated. She outlined AfDB’s Jobs for Youth in Africa initiative, aimed at creating 25 million jobs and training 50 million young Africans in green economy skills by the end of this year.

Key Outcomes and the Road Ahead

The summit marked several significant breakthroughs in global development financing, including:

• The endorsement by G20 finance ministers of public development banks’ role in shaping international financial policies.
• The creation of frameworks to recognize cultural industries as valuable economic assets.
• The establishment of a coalition between public development banks and civil society to ensure finance serves communities effectively.

Rémy Rioux, CEO of Agence Française de Développement and Chair of FiCS, remarked: "We have made significant progress in building public development banks as an asset class. In times of uncertainty, we are providing a steady and collective financial alternative."

Boitumelo Mosako, CEO of the Development Bank of Southern Africa, praised the event’s strong African representation: "With 34% of delegates from the continent, this has truly been an African FiCS. Africa is unstoppable as the second fastest-growing region in the world."

Looking Forward: Finance for Development Conference in Spain

Following the success of FiCS 2025, the Fourth Finance for Development Conference will take place in Spain between June and July this year. Organized by the United Nations and the Spanish government, the conference will continue discussions on reshaping the global financial system to better serve development goals.

The momentum generated by the Finance in Common Summit 2025 sets the stage for further collaboration, ensuring that financial institutions, governments, and the private sector work together to create a sustainable, equitable, and resilient global economy.