The Role of Sub-Regional Multilateral Development Banks in Advancing Africa’s Development Objectives
The importance of sub-regional multilateral development banks (MDBs) in driving Africa’s development goals was a focal point during a high-level panel discussion at the Fifty-Seventh Session of the Economic Commission for Africa (ECA) Conference of African Ministers of Finance, Planning, and Economic Development (COM2025). The theme of the event, “The Role of Sub-Regional Multilateral Development Banks in Delivering on Africa’s Development Objectives,” brought together policymakers, economists, and financial leaders to explore how MDBs can strengthen their capacity to mobilize resources, attract private sector investment, and enhance their contribution to regional integration and economic transformation.
The panel featured insights from key figures in the industry, including Ms. Hanan Morsy, Chief Economist and Deputy Executive Secretary of ECA; Mr. Admassu Tadesse, President and CEO of the Trade and Development Bank; and Ms. Fatima Elsheikh, Secretary General of the Arab Bank for Economic Development in Africa (BADEA). Moderated by Hopestone Chavula, Chief a.i of the Macroeconomic Analysis Section of the ECA, the discussion delved into solutions for the persistent financing challenges faced by MDBs and opportunities to bolster their role in supporting initiatives like the African Continental Free Trade Area (AfCFTA) and broader sustainable development goals.
Ms. Hanan Morsy emphasized the pivotal role of sub-regional MDBs in closing Africa’s financing gap and addressing obstacles to economic growth. She stressed the need for MDBs to have the capacity to mobilize long-term resources and provide affordable financing to African economies, especially given the tightening global financial conditions and decreasing development assistance flows.
The conversation also touched on the necessity of reforming the global financial system to create a more equitable framework that enables African MDBs to access financing on advantageous terms. The potential of reallocating Special Drawing Rights (SDRs) was discussed as a way to fortify MDBs’ capital base and expand concessional lending to African nations.
One key aspect of the dialogue was the role of MDBs in supporting Africa’s integration agenda, particularly through initiatives like the AfCFTA. Mr. Admassu Tadesse highlighted the need for investments in trade-enabling infrastructure to boost intra-African trade and industrialization, emphasizing the importance of scaling up projects in transport corridors, logistics, energy infrastructure, and digital connectivity.
Ms. Fatima Elsheikh shed light on the structural barriers that hinder MDBs from playing a more transformative role in Africa’s development. She pointed to challenges such as heavy reliance on low-income shareholders, limited callable capital, and high borrowing costs that must be addressed to expand MDBs’ financing capacity.
The panelists also stressed the importance of aligning MDBs with continental development priorities like Agenda 2063 and the 2030 Agenda for Sustainable Development. They underscored the need for agile financing mechanisms and strengthened partnerships with global development finance institutions to promote sustainable and inclusive growth across the region.
In conclusion, the discussion highlighted the critical role of sub-regional MDBs in advancing Africa’s development objectives and the urgent need for reforms to empower MDBs to drive economic transformation on the continent.
This article was originally distributed by APO Group on behalf of the United Nations Economic Commission for Africa (ECA).
