AfDB: €400mn Lusophone Compact agreements expected in September

The African Development Bank's Vice President for Corporate Services and Human Resources, Mateus Magala, recently shared insights on the €400 million Lusophone Compact Guarantee Programme. The agreement for this groundbreaking initiative is expected to be reached in September of this year. Magala highlighted the impact of the COVID-19 pandemic on the initiative, emphasizing the need for resilience in healthcare infrastructure and transparency in financial systems in order to drive sustainable economic growth in Africa. He also discussed the progress of the Lusophone Compact and the role of the private sector in driving its success. The compact, which aims to foster economic growth and prosperity in Lusophone-speaking countries, has garnered support from Portugal and the International Finance Corporation (IFC), with a pipeline of 19 projects totaling $3 billion identified across six countries. Magala emphasized the importance of the private sector in driving the compact's success and creating job opportunities, particularly for youth and women. He also highlighted the opportunities presented by the African Continental Free Trade Agreement for Lusophone-speaking countries, stressing the importance of lowering trade barriers and promoting intra-regional trade to stimulate economic development. The Lusophone Compact is poised to leverage investments and capacity-building initiatives to support small and medium-sized enterprises, ultimately driving economic growth and creating opportunities for sustainable development in Africa. As the agreement for the €400 million compact nears completion, stakeholders eagerly anticipate the positive impact it will have on the region's economic landscape.