The role of sub-regional multilateral development banks (MDBs) in advancing Africa’s development was the focus of a high-level panel discussion held on the sidelines of the Fifty-Seventh Session of the Economic Commission for Africa (ECA) Conference of African Ministers of Finance, Planning, and Economic Development (COM2025).
The event, titled “The Role of Sub-Regional Multilateral Development Banks in Delivering on Africa’s Development Objectives,” examined how MDBs can mobilise resources, attract private sector investment, and strengthen regional integration.
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Financing constraints and economic growth
Policymakers, economists, and financial leaders at the session highlighted the challenges MDBs face in securing adequate financing to support economic development. Ms. Hanan Morsy, Chief Economist and Deputy Executive Secretary of ECA, stressed the importance of empowering MDBs to mobilise long-term resources and offer affordable financing to African economies. She noted that global financial conditions are tightening, and development assistance is declining, making it crucial to strengthen the financial position of MDBs.
Discussions also addressed the need for reforms in the global financial architecture. Ms. Morsy highlighted that African MDBs should have access to financing under fairer conditions, reducing borrowing costs and enabling sustainable growth. The potential reallocation of Special Drawing Rights (SDRs) was considered as a measure to bolster the capital base of MDBs and expand concessional lending to African countries.
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Infrastructure development and trade facilitation
The panel explored ways MDBs can contribute to Africa’s integration agenda, particularly through the African Continental Free Trade Area (AfCFTA). Mr. Admassu Tadesse, President and CEO of the Trade and Development Bank, pointed out that inadequate trade-enabling infrastructure is a major constraint to intra-African trade and industrialisation. He stated that MDBs should scale up investments in transport corridors, logistics, energy infrastructure, and digital connectivity to enhance cross-border trade.
Infrastructure financing remains a priority, as weak transport and energy networks hinder economic progress. The need for MDBs to facilitate partnerships with global development finance institutions was underscored as a critical step in accelerating infrastructure development across Africa.
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Structural challenges facing MDBs
Ms. Fatima Elsheikh, Secretary General of the Arab Bank for Economic Development in Africa (BADEA), highlighted structural constraints limiting MDBs’ role in Africa’s economic transformation. She pointed to the overwhelming reliance on low-income shareholders, limited callable capital, and high borrowing costs as key obstacles preventing MDBs from scaling up their financing efforts.
The panelists emphasised that addressing these structural limitations requires strategic reforms and innovative financing mechanisms. Strengthening MDBs’ balance sheets and increasing their capacity to offer concessional lending were identified as priorities for ensuring sustained development financing.
Alignment with continental development priorities
MDBs were urged to align their financing strategies with Africa’s broader development goals, including Agenda 2063 and the 2030 Agenda for Sustainable Development. The panelists stressed that MDBs must adopt agile financing mechanisms to meet the evolving needs of African economies.
The discussion also called for stronger partnerships between MDBs and international financial institutions to enhance resource mobilisation and improve access to development financing. Collaboration with global development partners was seen as essential in advancing sustainable economic growth.
