Africa Investment Forum: AfDB joins hand with European Union to create jobs in Africa

The European Union has joined hand with the African Development Bank to renew the commitment of unlocking hundreds of millions in financing for African infrastructure and development needs.

Collaboration between the African Development Bank and the European Union would focus on de-risking the business environment in Africa, providing equity, guarantees and other types of non-grant support, African Development Bank President Akinwumi Adesina and European Union Commissioner Neven Mimica said at a news conference held Monday, on the sidelines of the Africa Investment Forum that took place in South Africa's Johannesburg between November 11 and 13.

Both men stressed the central role of investment in the transformation of Africa. Mimica said the EU whose goal is to move from billions to trillions in investment over the next decade, was encouraged by the Bank's recent capital increase. "The Bank is our strategic partner – it important that it is well capitalized," Mimica said.

Mimica said the EU would be supporting risk-sharing guarantees of 70 million euros set to unlock hundreds of millions and creating 175,000 jobs. Supporting investments in job creation in alliance with Africa over the next 5 years, the EU would disburse 60 billion euros in one of the largest guarantee funds created, creating 10 million jobs. The parties spoke on several areas of joint collaboration, including EU commitment for investments in Africa and its role as a major partner of the Africa Investment Forum.

Financial support from the European Union has enabled the African Development Bank to push through transformative initiatives such as PAGODA, which allows the institution to invest in infrastructure, especially in West Africa. PAGODA has enabled the bank to provide grants to low-income African countries, fragile states, provide concessional loans, technical assistance, equity and guarantees in support of sovereign and non-sovereign projects.