Shattering MDB Private Capital Mobilization Delusions 

Africa faces a substantial climate and SDG investment gap, requiring innovative and decisive solutions. Current efforts by Multilateral Development Banks (MDBs) to mobilize private capital are sub-optimal, with the potential to close only a mere 10% of Africa’s private financing gap between now and 2030-2050, even after significant reforms, compared to the global institutional investment community, representing over $200 trillion of assets, capable of closing up to 90% of Africa’s private financing gap through institutional investor-public partnerships.

Key Recommendations:

  1. Partner with Institutional Investors:
    Initiate strategic partnerships with domestic and global institutional investors to mobilize private capital at scale. Recognize the pivotal role of institutional investor-public partnerships in designing and standardizing asset classes.
  2. Value Natural Capital:
    Support African Union (AU) member states to ascribe commercial value to Africa’s natural capital and incorporate it into State balance sheets. Implement the AU 5% Institutional Investment Agenda policy and reforms that incentivize and motivate private institutional investors and rating agencies to upgrade ratings, attracting increased at-scale investment allocations.