Amer Calls on AfDB to Expand Private Sector Financing in Continent

Tarek Amer, Governor of Central Bank of Egypt (CBE) called on the African Development Bank (AfDB) to adjust its financing policies towards expanding projects financing for the private sector with the aim of creating job opportunities instead of adopting a policy of financing countries’ budgets.

In his speech to the remote annual meeting of the Bank's Board of Governors for the year 2020, Amer said that Egypt has great aspirations regarding the role of the African Development Bank, as the needs and ambitions of the African continent are increasing.

Amer expressed his appreciation for the historic role of the African Development Bank, stressing that Egypt is an integral part of the African continent.

Amer added, “I had previously called during the previous meeting of the bank’s board of governors, in the presence of the World Bank, the International Monetary Fund (IMF) to play a greater role for the benefit of our continent, and I remain ambitious that the African Development Bank would join them in respond to our call.”

He indicated that Africa has been receiving financial support from developed countries, but it remains far from sufficient and far from what is appropriate, when compared to what the African continent offers to the developed world.

"Denominated in hard currency, Africa provides more than $547 billion every year, through the export of raw materials, services and goods, while the financing that the continent receives remains similar to crumbs compared to this amount. This is not a fair equation or a balanced formula, and we must renegotiate that," Amer pointed.

"If we talk about a trade whose volume is close to $600 billion annually in one direction, we find that we need equivalent financing for such a level of trade, as this financing is important for the stability of the Africa to curb inflation and improve the standard of living," he said.

The Governor indicated that the AfDB can play a greater role with African central banks and African governments by transferring part of the reserves of African banks for the benefit of the African people, granting funds to African countries and reducing dependence on the conditions of international institutions.