The Finance in Common Summit (FiCS) recently wrapped up in Cape Town, South Africa, with a strong call for global development finance institutions to collaborate in tackling poverty and development challenges. Led by South African Finance Minister Enoch Godongwana, the summit was held alongside the G20 Finance Ministers’ Meeting and focused on fostering infrastructure and finance for fair and sustainable growth.
Godongwana emphasized the importance of collective action, stating, “Your determination and commitment will change the world. Your determination and will have an impact on global poverty.” He highlighted South Africa’s structural reforms in key sectors like electricity, roads, and ports, which have created new investment opportunities for development partners.
Representing African Development Bank President Dr. Akinwumi Adesina at the Council of Europe Development Bank meeting, the Bank’s Vice President for Finance and Chief Financial Officer, Hassatou Diop N’Sele, stressed the need for increased financial commitments, particularly for the African Development Fund’s 17th replenishment. She also called for simplified processes for accessing climate finance and enabling policies to facilitate sustainable capital flows to Africa.
During FiCS, Diop N’Sele discussed the African Development Bank’s innovative financing tools and initiatives, including the landmark hybrid capital transactions and the Africa Investment Forum, aimed at mobilizing resources and engaging the private sector on a larger scale. She emphasized the importance of partnerships with philanthropies and foundations to amplify impact and accelerate progress in expanding climate finance in Africa.
The Bank’s delegation highlighted the Mission 300 initiative, which aims to provide electricity access to 300 million Africans by 2030. With a commitment of $18.2 billion from the Bank, the World Bank, and other partners, the initiative focuses on accelerating development and fostering self-sufficiency and sustainable growth in Africa.
Senior Bank leaders stressed the urgency of faster implementation of infrastructure projects, with Vice President Solomon Quaynor calling for a shift to prioritizing green infrastructure and completing projects within three years. The African continent needs $2.7 trillion by 2030 to meet its climate goals, but currently receives only a small fraction of global climate finance.
The summit achieved significant breakthroughs in expanding development financing, including the recognition of public development banks’ role in international financial architecture and the formation of a coalition between public development banks and civil society to ensure community-focused development finance.
Looking ahead, the Fourth Finance for Development Conference will take place in Spain later this year, continuing discussions on reshaping the international financial architecture to better serve development needs. As Africa continues to grow and innovate, partnerships and collaboration will be key in driving sustainable development across the continent.
