Lusophone Compact Gains Momentum as AfDB Engages Portuguese Private Sector

The African Development Bank (AfDB) has made a critical leap forward in its mission to bolster economic development and investment across Portuguese-speaking African countries (PALOPs), following a high-level delegation’s participation in the 13th Lusophone Compact Standing Committee Meeting held in Lisbon, Portugal. The event, which took place from 30 April to 02 May 2025, focused squarely on advancing the Lusophone Compact Guarantee Program, a flagship initiative designed to catalyze private sector financing and drive inclusive growth in the Lusophone world.

Strategic Engagements to Expand Financing Tools

The AfDB delegation engaged extensively with the Government of Portugal, laying the groundwork for the diversification of financial instruments tailored for PALOP countries. These discussions focused on operationalizing mechanisms such as credit guarantees, risk mitigation tools, and blended finance structures to unlock larger volumes of investment capital. The Lusophone Compact — a tripartite initiative between the AfDB, Portugal, and PALOPs — was further reinforced with Brazil’s recent accession, becoming the eighth member of this dynamic development coalition.

According to Neima Ferreira, the Bank’s Lusophone Compact Coordinator, the mission was “highly successful,” particularly in forging direct connections with private sector entities whose projects promise substantial developmental impact across PALOP countries.

Building a Robust Private Sector Pipeline

A significant portion of the mission was devoted to high-level meetings with leading Portuguese private sector firms. These interactions were aimed at identifying investment-ready projects and fostering partnerships that align with the Compact’s goals of sustainable development, job creation, and infrastructure expansion.

The delegation emphasized opportunities in key sectors such as renewable energy, agribusiness, transportation, and digital innovation. In doing so, the Bank hopes to nurture a diverse pipeline of transformative projects that can be supported through the Lusophone Compact Guarantee Program and other risk-sharing tools.

One of the core messages communicated during these meetings was the need to raise awareness about the Compact among private investors, many of whom are still unfamiliar with the specific benefits and protections it offers. By improving outreach and education, the Bank and its partners aim to create a more enabling environment for private capital to flow into PALOP economies.

Portugal and AfDB: A Strengthened Development Partnership

The mission also reaffirmed the growing synergy between the African Development Bank and the Portuguese government. As Aida Ngom, Director of Private Sector Development at the Bank, remarked, “Our enduring partnership with Portugal has never been stronger. We are committed to harnessing the strength of the Portuguese guarantee and other risk mitigating instruments to shape a bold and prosperous future through the Lusophone Compact.”

Portugal’s continued commitment to the Compact has been instrumental in its implementation. The country has not only provided financial backing through guarantees but also helped mobilize technical assistance and policy dialogue initiatives that enable effective delivery of development outcomes.

The Lusophone Compact Guarantee Program: A Game-Changer

At the heart of the mission’s agenda was the Lusophone Compact Guarantee Program, a critical instrument that helps de-risk investments by offering guarantees against potential losses. This makes it easier for private investors to commit capital in countries where they might otherwise face significant political or commercial risk.

The Program also plays a catalytic role by facilitating blended finance arrangements, combining public and private resources to fund infrastructure, social services, and enterprise development across Angola, Mozambique, Guinea-Bissau, Cape Verde, São Tomé and Príncipe, and other PALOP nations.

Ferreira concluded with optimism: “I believe the Bank has built strong ties, and many positive developments will emerge from this mission for the PALOP region.”

Looking Ahead

As the Lusophone Compact continues to evolve with the support of new partners like Brazil, its reach and impact are set to grow. The African Development Bank remains committed to transforming the Compact into a model for regional cooperation, leveraging shared language, history, and economic ties to create a more resilient and prosperous future for millions of citizens across the Lusophone world.