Addressing the Summit on Financing African Economies, hosted by President of France, Emmanuel Macron, Prime Minister Justin Trudeau announced Canada will accelerate its support for the African Development Bank’s (AfDB) Seventh General Capital Increase to maintain its ability to provide valuable financial assistance to its clients.
This will help create economic growth and opportunity for people across Africa. In addition to this broader support, Canada will also provide $7 million over five years for the AfDB’s Africa Climate Change Fund to help people, and specifically women, across the continent adapt to the impacts of climate change.
“We can’t defeat this virus and build back better at home unless all countries have the resources to respond to and recover from this global challenge,” said Trudeau. “With some of the fastest growing economies in the world, and with some of the youngest populations on the planet, Africa’s success and recovery is key to our shared future. Only together can we lay the foundations of a better world.”
Trudeau also underlined the commitment in Budget 2021 to provide a $300 million recapitalization to FinDev Canada over three years, starting in 2023-24. This will allow FinDev Canada to support private sector growth to help developing countries reduce poverty, enhance women’s economic participation, and mitigate and adapt to climate change, including in Africa. He also announced the creation of 2X Canada: Inclusive Economic Recovery, a new $75.9 million facility in partnership with FinDev Canada to support low-income and underserved people, particularly women and girls, in sub-Saharan Africa, Latin America and the Caribbean.
As part of Canada’s commitment to economic growth in Africa, Trudeau also announced funding of $15.2 million to the African Trade Policy Centre of the U.N. Economic Commission for Africa. This will support the implementation of the Africa Continental Free Trade Area, a key milestone in African economic integration that will create jobs and growth across the continent. Canada will be providing $40 million in funding to GuarantCo to enhance affordable and sustainable infrastructure in low-income countries and fragile states.
Trudeau also announced $5 million to the Regional Disease Surveillance Systems Enhancement Program through the World Bank, to strengthen national and regional capacity for disease surveillance and epidemic preparedness in West Africa, and to provide immediate and effective response in the event of emergencies.
The Summit on Financing African Economies brings together heads of state and government from Africa and around the world to respond to the specific financing needs to support a green, sustainable and inclusive recovery in Africa.