A New Chapter in Africa’s Development Finance Collaboration: AfDB and DEG Deepen Strategic Alliance

In a significant move to accelerate private sector development across Africa, the African Development Bank Group (AfDB) and the Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the development finance arm of Germany’s KfW Group, have solidified their strategic partnership. This alliance aims to scale up investments in small and medium-sized enterprises (SMEs), renewable energy, infrastructure, and industrialization initiatives throughout the continent.

Senior officials from both institutions convened on 14 May 2025 in Abidjan, Côte d’Ivoire, to reaffirm their commitment to joint development goals and explore new avenues of collaboration. The meeting brought together key decision-makers and sector experts, signaling a strong commitment to bolstering Africa’s private investment landscape.

High-Level Delegation and Strategic Discussions

Representing the AfDB were Solomon Quaynor, Vice President for Private Sector, Infrastructure and Industrialization; Wale Shonibare, Director for Energy Financial Solutions, Policy and Regulation; Aida Ngom, Director of Private Sector Development; and a cross-section of the private sector and energy teams. On the DEG side, CEO Roland Siller led the delegation, joined by Bernhard Tilemann, Director for West Africa, and Rena Terfruechte, Director for Corporates in Africa.

The discussions focused on expanding joint activities in critical development areas including private equity, SME financing, infrastructure development, renewable energy, and Environmental, Social and Governance (ESG) benchmarking. ESG benchmarking, in particular, was highlighted as a foundation for mutual reliance and a shared commitment to sustainability and accountability.

Shared Vision for Impact and Innovation

“This strategic partnership with DEG represents an important pillar in our efforts to mobilize private capital for Africa's development,” said Solomon Quaynor. “Together, and along with KfW, we are creating innovative solutions that address the continent's most pressing challenges while unlocking new opportunities for sustainable growth.”

Quaynor emphasized the importance of scaling private capital mobilization through innovative financing instruments and capacity building initiatives targeting African entrepreneurs and SMEs.

Roland Siller echoed this sentiment, emphasizing the synergy between DEG and the AfDB. “Our longstanding partnership with the African Development Bank continues to be a cornerstone of our Africa strategy. By combining our strengths and coordinating our approaches, we can achieve greater impact and create more sustainable economic opportunities across the continent,” he stated.

Impressive Track Record and Future Commitments

As of 2024, DEG managed a global portfolio valued at €11.6 billion, of which €3.1 billion was allocated to Africa and the Middle East and North Africa (MENA) region. This demonstrates DEG’s firm commitment to supporting economic transformation in Africa.

The partnership between DEG and the AfDB is already yielding tangible outcomes, including involvement in approximately 20 private equity fund projects, with a combined commitment of nearly $548 million. In addition, both institutions have co-financed multiple renewable energy and industrial ventures that are helping to close Africa’s infrastructure and energy gaps.

Looking ahead, both parties are keen to deepen their collaboration in ESG alignment, drive blended finance models, and identify high-impact sectors where capital deployment can foster inclusive and sustainable development.

Catalyzing Change Through Public-Private Synergy

The DEG-AfDB partnership exemplifies the growing importance of public-private cooperation in addressing Africa’s development challenges. With the continent facing significant financing gaps in infrastructure, climate resilience, and job creation, leveraging the strengths of both development finance institutions is pivotal.

Through strategic investments and knowledge exchange, AfDB and DEG are positioning themselves as catalysts for transformative change—one that prioritizes sustainability, inclusivity, and resilience. Their renewed commitment signals optimism for Africa’s economic prospects and a shared belief in the power of partnerships to drive meaningful progress.