NEWS

The African Development Bank Group and the Government of Denmark have committed to deepening their longstanding cooperation on mobilising private capital, advancing Africa’s green transition and strengthening development finance, as access to concessional resources tightens for many African countries.

African Development Bank Group President Dr Sidi Ould Tah and Denmark’s Minister for Foreign Affairs Lars Løkke Rasmussen signed a memorandum of understanding on behalf of the two entities in September.

A key focus of the agreement, which runs through 2030, is enhanced cooperation on private capital mobilisation, including blended finance, guarantees and risk-sharing, through dialogue with the Export and Investment Fund of Denmark and Impact Fund Denmark.

The agreement creates scope to build on that record in renewable energy, climate adaptation, water security and green infrastructure.

The collaboration will extend beyond finance to include plans to increase exchanges of economic analysis, policy research and technical knowledge. Other areas of focus include job creation, expanding economic opportunities for young people, and strengthening resilience in countries affected by fragility and conflict. Regular strategic consultations will identify specific programmes and projects where Danish and Bank Group capabilities can be combined. Discussions are also expected to continue the secondment of Danish-funded specialists to the Bank.

Climate action and the green transition have been central pillars of the partnership between the Bank Group and Denmark for more than a decade. In 2011, Denmark provided DKK 300 million as a founding contributor to establishment of the Sustainable Energy Fund for Africa. It has also financed Bank initiatives covering water, infrastructure, urban development and climate-related finance.

Denmark has been a shareholder of the African Development Bank since 1982 and a contributor to the African Development Fund since 1973. Most recently, it was one of the first countries to announce its pledge to the Fund’s seventeenth replenishment, ADF-17, with a commitment of DKK 1.17 billion, a 40 percent increase over its ADF-16 commitment.