Africa Investment Forum: How DFC & AfDB to mobilize private capital for Africa

The 2019 Africa Investment Forum held in Johannesburg brought together key players in the investment and development sectors to explore opportunities in Africa. Among the notable partnerships forged at the event was the Memorandum of Understanding (MoU) signed between the United States International Development Finance Corporation (DFC) and the African Development Bank (AfDB). This partnership aims to mobilize private capital to support development projects across the continent, highlighting the potential for growth and investment in Africa. CNBC Africa's Kenneth Igbomor spoke to Adam Boehler, CEO of DFC, to discuss the implications of this collaboration and the broader vision for investment in Africa. Boehler emphasized the significance of the MoU with AfDB, highlighting a shared commitment to investing in a strong and self-sustaining Africa. The partnership represents a strategic alliance to co-invest in projects that drive significant development on the continent. With a focus on infrastructure projects, entrepreneurship, and direct investment in young entrepreneurs, the DFC aims to leverage its $60 billion capital base to catalyze economic growth and facilitate trade between the US and Africa. One of the key themes that emerged from the discussion was the importance of empowering local communities and fostering sustainable investment practices. Boehler stressed the need for transparent partnerships that prioritize rule of law, quality infrastructure, and environmental stewardship. By engaging with African leaders and local stakeholders, the DFC aims to support projects that have a lasting impact and promote inclusive growth across the continent. In terms of the DFC's medium to long-term strategy, Boehler outlined a multi-faceted approach that combines direct financing for entrepreneurs with strategic investments in infrastructure. The goal is to build a robust ecosystem that fuels economic development and creates opportunities for job creation and skill development. By partnering with like-minded investors and international allies, the DFC seeks to channel private capital into projects that align with Africa's long-term growth objectives. When asked about the feedback received from African presidential engagements, Boehler underscored the demand for alternative investment models that prioritize sovereignty, sustainability, and local empowerment. The DFC, along with its partners, offers a distinct approach that values transparency, respect for local communities, and the delivery of high-quality infrastructure. By focusing on building durable partnerships and driving sustainable economic development, the DFC aims to set a new standard for investment practices in Africa. As the partnership between the DFC and AfDB takes shape, Africa is poised to attract substantial private capital investment that can unlock new opportunities and drive inclusive growth. The collaboration between these two development finance institutions signals a strong commitment to advancing the economic potential of the continent and building a more prosperous future for its people.