#AfDBAM2020: How to accelerate private sector growth in Lusophone countries

The African Development Bank (AfDB) has been at the forefront of efforts to drive private sector and public-private partnership investments into Africa's Lusophone countries. As the Annual Meetings of the AfDB take center stage, Mateus Magala, Vice President of Corporate Services and Human Resources at the AfDB, discussed the AfDB's initiatives in the Lusophone countries. The theme of this year's annual meetings is focused on building resilience for post-COVID-19 Africa. Magala emphasized the importance of mobilizing necessary resources and finance to cope with the current situation and build a future-ready resilient society in Africa. The AfDB aims to help African countries overcome and rebuild their economies to be prepared for similar future challenges. The response from Lusophone countries to the COVID-19 pandemic mirrors challenges faced globally, with weak economies and health systems. These countries are struggling with debt levels and capacity to finance immediate needs like distributing essential materials. Magala stressed the importance of supporting these countries to ensure they are not left behind. The Lusophone Development Compact, established in 2018, aims to integrate Lusophone economies and empower them to participate fully within regional economies. Portugal has provided a guarantee of $400 million to support capacity building, risk opportunities, and financing. Despite the impact of COVID-19, the AfDB has reoriented the instrument to better support countries facing challenges. Feedback from key stakeholders, including the private sector and governments, has been positive. 15 projects from the Lusophone compact qualified for funding totaling over $3 billion during the African Investment Forum in 2019. A robust pipeline of 22 projects, primarily PPPs, worth over $3 billion, is being refined to decide on the next steps for support under the compact. The initiative has garnered interest from international institutions, including the IFC, looking to contribute and support private sector development in Lusophone countries. As the AfDB continues its efforts to drive private sector growth and investment in Lusophone countries, the annual meetings provide a platform to assess progress, address challenges, and plan for the future. The collaboration between the AfDB, Lusophone countries, and international partners is crucial in realizing the potential for economic development and resilience in the region.