Economic Commission for Africa advocates stronger MDBs to boost continental economy

ECA’s Chief Economist and Deputy Executive Secretary, Hanan Morsy, made this call in a statement published on the commission’s website on Sunday, the News Agency of Nigeria (NAN) reports.

She spoke at a high-level panel during the 57th Session of the ECA Conference of African Ministers of Finance, Planning, and Economic Development (COM2025) in Addis Ababa, Ethiopia.

Morsy highlighted the urgent need to address structural barriers impeding economic growth in Africa. She noted that tightening global financial conditions and declining development aid threaten Africa’s ability to finance essential infrastructure and development projects.

According to her, sub-regional MDBs, if well-capitalized and properly structured, can play a critical role in bridging Africa’s financing gap by mobilizing resources, attracting private investments, and supporting regional economic transformation.

Panelists at the conference examined strategies to empower MDBs to enhance resource mobilization, scale up investment in trade and infrastructure, and support industrialization efforts, particularly under the African Continental Free Trade Area (AfCFTA).

She highlighted their overreliance on low-income shareholders, limited callable capital, and high borrowing costs as major impediments to their efficiency in delivering development financing.

Discussions at the panel extended to potential reforms of the global financial system. Experts explored strategies such as reallocating Special Drawing Rights (SDRs) to bolster the capital base of MDBs, thereby expanding concessional lending opportunities for African countries.

Furthermore, panelists stressed the importance of aligning MDBs’ strategies with Africa’s long-term development objectives, including the African Union’s Agenda 2063 and the United Nations’ 2030 Sustainable Development Goals (SDGs).