The USA’s Development Finance Corporation (DFC),the UK’s CDC and a range of multilaterals are to join forces under the G7’s Build Back Better World (B3W) programme to finance projects in Africa.
Under the agreement, dubbed the Africa Resilience Investment Accelerator (ARIA), the multilaterals are aiming to “unlock investment in fragile states through collective influence and by pooling expertise to overcome the challenges of providing capital in these countries”.
ARIA’s members include the EBRD, EIB, AfDB, Swedfund, IFC, JICA, Cassa Depositi e Prestiti, FinDev Canada, Proparco, DFC and the CDC.
The initiative is seen as a key part in G7’s commitment to provide over $80bn of investment into the African private sector by 2027.
It was recently announced that the UK’s CDC will undergo a major reorganising and rebranding, to be called the British International Investment (BII), and will seek to “scale up financing and help the private sector move in”.
“This collaboration advances our B3W goal of financing sustainable investment in infrastructure in those countries that often struggle the most to attract private capital,” said Andrew Herscowitz, the DFC’s chief development officer.
Partnerships Bulletin recently published a feature on B3W and the promising future role of PPPs in the initiative. To read more, click here.