African Development Bank Group Announces New Funding For African Infrastructure Projects

The European Union’s contribution to co-finance operations with the African Development Bank has significantly increased over the last two years, now amounting to €972 million in blending operations and guarantees. This figure will further increase after the signing of the new Financial Framework Partnership Agreement.

Signed on January 28 by European Commission President Ursula von der Leyen and African Development Bank Group President Dr Akinwumi Adesina, this landmark agreement renews the partnership between the two organizations. It opens a wide range of opportunities for both organizations to deliver new joint financing for infrastructure projects.

For the EU, this would be in keeping with the priorities of the Global Gateway, its strategy to deliver sustainable and trusted connections with partner countries. Between 2021 and 2027, through the Africa-EU Global Gateway Investment Package, the EU will support the African continent with €150 billion worth of investments.

This agreement will enable a series of investments in Sub-Saharan Africa in strategic transport corridors, in energy and digital connectivity. One of the main joint projects is the development of the “Lobito Corridor,” an innovative transport corridor that will enhance export possibilities for Zambia, Angola, and the Democratic Republic of Congo, to boost the circulation of goods and to promote the mobility of citizens.

At the Global Gateway Forum in October 2023 the EU and the African Development Bank signed a Memorandum of Understanding with Global Partners to mobilize financing for the development of this corridor. Other partners include the host governments of Angola, DRC and Zambia, the US Government and the Africa Finance Corporation. 

The European Commission and the African Development Bank Group have closely aligned strategic priorities and programming. A cooperation agreement signed in 2014 expired in April 2019. Negotiations for a new agreement began after the implementation of the European Commission’s new Financial Regulation in 2018. These negotiations also considered developments in both organizations, notably in new provisions regarding the African Development Bank Group’s compliance with EU Restrictive Measures.