Infrastructure and private sector development emerged as top priorities for African development financial institutions as they concluded their annual assembly last week. Speaking during the institutions’ meeting in Kigali last week, Peter Noni, the Association of African Development Finance Institutions (AADFIs) chairman, urged development banks to give more support to both public and private sector development projects to spur sustainable growth on the continent. “We should align our funding objectives in ways that speed up regional integration and socio-economic development in Africa through the promotion of sustainable financing and strengthening of co-operation among African financial institutions,” he said. He urged development banks to put more emphasis on funding of micro-credit activities and small-and-medium enterprises (SMEs) given their direct impact on employment. He also urged them to promote income-generating activities as well as develop necessary synergies with Africa’s development partners. Alex Kanyankole, the Development Bank of Rwanda (BRD) chief executive officer, said the development institutions agreed to take advantage of bond markets and external credit lines to raise the necessary funds to finance their customers’ projects. “Our credit ratings are mostly good; and we can seek ways of raising long-term funding in order to support long-term investments like the construction of feeder roads that link farmers to markets,” he said. It was during these meetings that were hosted by BRD that long-term funding deals were clinched, marking a stride torwards implementing some of the development projects that were discussed during the 49th African Development Bank Annual Meetings. Deals were signed between the African Guarantee and Economic Co-operation Fund (FAGACE), the Development Bank of Rwanda and the Private Sector Federation to facilitate funding of short and medium-term investment projects. The deals will see BRD and FAGACE offer financial security and project co-funding to SMEs. Henri-Marie Dondra, the FAGACE managing director, said supporting development of financial institutions was crucial to ensure entrepreneurs access funding to implement their projects. Meanwhile, the institutions were also reminded to not only be influenced by governments in implementing projects, but make independent decisions that ensure the institutions remain financially sound.
