African financial institutions call for coordinated financing solutions

African multilateral financial institutions, policymakers, development partners and private sector leaders have called for more coordinated, innovative and better-structured financing approaches to support Africa’s digital and technological transformation.This was a key message from a high-level session held earlier this month on the sidelines of the 58th Session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development, under the theme: “Financing for Innovation: The Role of African Multilateral Financial Institutions in Accelerating Africa’s Technological and Economic Transformation.”The session brought together senior representatives from governments, African multilateral financial institutions and development partners to examine how to mobilise long-term, affordable capital for digital infrastructure, artificial intelligence and innovation-led sectors - critical drivers of productivity, job creation and structural transformation.Despite the rapid expansion of Africa’s digital economy, participants underscored that access to affordable, long-term financing remains a binding constraint.High costs of capital, limited risk-sharing mechanisms, currency risks and insufficient early-stage financing continue to inhibit investment in digital infrastructure and innovation ecosystems. These challenges are further compounded by gaps in project preparation and the limited availability of bankable investment opportunities. Unlocking productivity Opening the session, Hanan Morsy, Deputy Executive Secretary (Programme) and Chief Economist at the United Nations Economic Commission for Africa, emphasised: “Africa’s innovation challenge is not a shortage of ideas, but a shortage of long-term, affordable and well-structured financing. Addressing this will be critical to unlocking productivity, job creation and structural transformation across the continent.”Participants highlighted the need to address the disconnect between capital availability and actual investment in innovation-driven sectors.Haytham Elmaayergi, Executive Vice President – Global Trade Bank at the African Export-Import Bank, noted: “One of Africa’s key challenges is not a lack of capital, but a shortage of bankable projects and stronger institutional collaboration to scale investment.”Strengthening project preparation, improving pipeline development and deepening coordination across institutions were identified as key priorities to unlock large-scale financing.Participants also emphasised the need to adapt financing approaches through blended and risk-sharing structures, combining guarantees, advisory services and capital mobilisation to better align with the risk-return profiles of technology and innovation-driven sectors.Adeniran Aderogba, President and CEO of the Regional Maritime Development Bank, stated:“In the technology space, risk is harder to structure. We need more creative financing models and dedicated funds to support early-stage innovation.” Tailor-made financeThe discussion highlighted the need for expanded use of tailored financial instruments, including blended finance, co-financing mechanisms and dedicated innovation funds to support the full lifecycle of innovation, from early-stage development to scale.The session also underscored that financing innovation must go hand in hand with investments in enabling infrastructure and systems.Robert Lisinge, Director of Technology, Innovation, Connectivity and Infrastructure at the ECA, noted: “Technology and innovation go beyond digital. We are talking about a broader ecosystem, including infrastructure, energy and emerging technologies, all of which require significant investment.”Participants emphasised the importance of strengthening regulatory frameworks, digital infrastructure and innovation ecosystems to enable scalable and sustainable investment.The session concluded with a strong call to move beyond traditional financing approaches towards more coordinated and practical solutions that can:• reduce financing costs for digital and innovation sectors;• expand risk-sharing and co-financing mechanisms;• strengthen project preparation and pipeline development;• mobilise long-term capital at scale;• enhance collaboration among African institutions and partners.Organised by the Alliance of African Multilateral Financial Institutions and partners, the session forms part of ongoing efforts to strengthen Africa’s financial architecture and position African multilateral financial institutions at the centre of financing the continent’s digital and economic transformation. - Distributed by APO Group on behalf of the Alliance of African Multilateral Financial Institutions (AAMFI).

African financial institutions call for coordinated financing solutions

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Republikein 2026-06-30

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African financial institutions call for coordinated financing solutions

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Republikein 2026-06-30

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