The Economic Commission for Africa (ECA) has emphasized the need to strengthen sub-regional multilateral development banks (MDBs) to enhance their capacity to mobilize long-term resources and provide affordable financing for African economies.
ECA’s Chief Economist and Deputy Executive Secretary, Hanan Morsy, made this call in a statement published on the commission’s website on Sunday, the News Agency of Nigeria (NAN) reports.
She spoke at a high-level panel during the 57th Session of the ECA Conference of African Ministers of Finance, Planning, and Economic Development (COM2025) in Addis Ababa, Ethiopia.
Morsy highlighted the urgent need to address structural barriers impeding economic growth in Africa. She noted that tightening global financial conditions and declining development aid threaten Africa’s ability to finance essential infrastructure and development projects.
According to her, sub-regional MDBs, if well-capitalized and properly structured, can play a critical role in bridging Africa’s financing gap by mobilizing resources, attracting private investments, and supporting regional economic transformation.
Strengthening Africa’s Financial Institutions
Panelists at the conference examined strategies to empower MDBs to enhance resource mobilization, scale up investment in trade and infrastructure, and support industrialization efforts, particularly under the African Continental Free Trade Area (AfCFTA).
- Admassu Tadesse, President and CEO of the Trade and Development Bank, stressed the importance of increasing investment in trade-enabling infrastructure.
- He stated that such investment is crucial to fostering intra-African trade and driving industrialization across the continent.
- Similarly, Fatima Elsheikh, Secretary-General of the Arab Bank for Economic Development in Africa (BADEA), pointed out key constraints limiting the effectiveness of MDBs.
She highlighted their overreliance on low-income shareholders, limited callable capital, and high borrowing costs as major impediments to their efficiency in delivering development financing.
Calls for Global Financial System Reforms
Discussions at the panel extended to potential reforms of the global financial system. Experts explored strategies such as reallocating Special Drawing Rights (SDRs) to bolster the capital base of MDBs, thereby expanding concessional lending opportunities for African countries.
Furthermore, panelists stressed the importance of aligning MDBs’ strategies with Africa’s long-term development objectives, including the African Union’s Agenda 2063 and the United Nations’ 2030 Sustainable Development Goals (SDGs).
More insights
- Founded in 1958 by the United Nations Economic and Social Council (ECOSOC), ECA is one of the UN’s five regional commissions.
- Its mandate is to drive economic and social development across its member states, strengthen intra-regional integration, and enhance international cooperation to support Africa’s growth.
- With 54 member states, the ECA serves a dual role as both a regional arm of the UN and a vital part of Africa’s institutional framework.
