As we collectively strive to address the pressing challenges of climate change and sustainable development, the imperative for swift and strategic action to mobilize private capital at scale for our $3 trillion NDCs cannot be overstated. The urgency to rectify the ongoing Multilateral Development Banks (MDBs) Private Capital Mobilization (PCM) market failure demands immediate attention and collaborative efforts with the global institutional investment community.
Historically and presently MDBs as a $1.5 trillion collective global balance sheet (including the World Bank, AfDB, etc.), are falling short, with the potential to close only a mere 10% of the financing gap between now and 2030-2050, even after current significant reforms. This contrasts sharply with the global institutional investment community, representing over $200 trillion of assets, capable of closing up to 90% of Africa’s financing gap through institutional investor-public partnerships.
