The US International Development Finance Corporation (DFC) and African Development Bank are planning to invest a combined $2bn in Africa, with a goal of mobilizing an additional $3bn from the private sector alongside their investments.

Akinwumi Adesina, President of the African Development Bank Group, said: “Doing so would support total investment of $5bn in regional development projects. The partners will use debt financing, equity investments, political risk insurance, and other financial tools to meet these goals.”

DFC has signed a memorandum of understanding (MOU) with the African Development Bank to support development in Africa.

Adam Boehler, CEO of DFC, said: “To tackle the multitude of urgent development challenges facing Africa—from infrastructure development to financial inclusion and food security—collaboration with like-minded partners is essential.”

“The MOU signed today will help harness the diverse strengths of DFC and the African Development Bank to make tangible progress on our shared goals across the continent.”

Akinwumi Adesina, President of the African Development Bank Group, added: “The partners will focus on priority sectors including critical infrastructure, power and energy, financial services, and agriculture, and prioritize investments that empower the region’s women.”

The MOU is intended to leverage the collective resources of DFC and the African Development Bank to more effectively mobilize private capital to mutual development goals in Africa.

Through their collaboration, DFC and the African Development Bank will strengthen cooperation on business development, due diligence, and ongoing monitoring of jointly supported projects.

The collaboration will advance a private sector-led model that offers a robust alternative to unsustainable state-led investments that undermine long-term prosperity and stability in Africa.

Boehler is attending the AfDB’s initiative - Africa Investment Forum - during a trip to Sub-Saharan Africa to highlight US commitment to the region, explore private sector investment opportunities, and strengthen relationships with key regional partners.

Boehler will also travel to Ethiopia before returning to Washington.

The visit marks Boehler’s first official travel to Africa as CEO of DFC, a new US Government agency that modernizes the Overseas Private Investment Corporation (OPIC).

Equipped with a more than doubled investment cap of $60bn and new financial tools, DFC has more resources to invest in priority regions such as Sub-Saharan Africa and expanded flexibility to collaborate with key partners like the African Development Bank.