AADFI TRAINING ON BLENDED FINANCE

Today the CEDA CEO and Chairman of AADFI officially opened the AADFI Blended Finance Training. The Training conducted by Convergence, a leading Global Network for Blended Finance is attended by delegates from across Southern Africa

Opening Remarks by Mr. Thabo Thamane, Chairman AADFI & Chief Executive Officer of CEDA, Botswana, at the Training on Blended Finance, holding at the MASA Square Hotel, Gaborone from December 9 to 10, 2019.

Ms. Lade Araba, Managing Director, Convergence Blended Finance-Africa,

Distinguished participants,

Ladies and Gentlemen,

It is with pleasure that I welcome you to this Training on Blended Finance which is being organized by the AADFI and facilitated by the Convergence Blending Global Finance, with the Citizen Entrepreneurial Development Agency (CEDA) as host. I acknowledge the partnership between the AADFI and the SADC-DFRC in promoting capacity-building in the region and in supporting this programme.

Let me recall that the journey to this training started in 2017 when AADFI and Convergence Blended Finance Inc., Canada,  had series of discussions  that culminated in their signing of an MoU to work together in promoting activities that support the SDGs among DFIs, particularly in the area of blended finance .

Let me also recall that in November 2017, the AADFI was privileged to host Ms. Joan M. Larrea, Chief Executive Officer of the Convergence Blended Finance Inc., Canada, as keynote speaker during the 2017 CEO Forum of African DFIs  held in Abuja, Nigeria. These were some of our earlier engagements with Convergence in working together to promote financing for development goals.

I am therefore pleased to note, that the Convergence has set up an Africa Office located in Nairobi Kenya. I commend this move which is bound to strengthen collaboration with the AADFI and African DFIs.

Ladies and Gentlemen,

These actions demonstrate commitment to support our institutions in leap frogging their activities in promoting SDGs’ investments in their countries.

I, therefore, welcome Ms. Lade Araba, Managing Director of Convergence Blending Global Finance- Africa, and her team to Gaborone for this programme, and request that she conveys the appreciation of the AADFI Executive Committee to her colleagues in Canada.

Ladies and Gentlemen,

You will agree with me that this training is coming at a very auspicious time going by the huge investment needs for SDGs, particularly on our continent. Available figure indicates that ‘the bulk of the SDGs investment needs estimated at US$5-7 trillion annually is in emerging markets and developing economies (EMDEs)’, an indication  that there is huge funding requirement to finance these SDGs investments.

The question therefore is where will this funding come from, particularly for development finance institutions in Africa?

Ladies and Gentlemen,

The funding gap estimated at US$2.5 trillion is quite enormous for all EMDEs, with US$1.3 trillion approximately for Africa.

The Positive Impact Initiative in their November 2018 publication on “Rethinking Impact to Financing the SDGs” clearly noted that “the current financial inflows are insufficient: private finance is constrained by risk and return requirement, while public finance is in scarce supply”. Hence the opinion that “if the resulting financing gap remains unresolved, investment needs will grow overtime because of a cumulative effect”.

Ladies and Gentlemen,

Herein lies the challenge! How do we crowd in funding for financing SDGs investments in our various economies? As development finance institutions (DFIs), this should be one of our major preoccupations as without funding we cannot finance bankable SDG projects.

With the dwindling public sector funding, the challenge is now for DFIs to look for innovative means of mobilizing resources for sustainable development projects.

This is where this training on Blended Finance is of great relevance as it presents solution on how to crowd in financial resources for development projects in our countries.

Ladies and Gentlemen,

Let me conclude, by once again expressing our appreciation to Ms. Lade Araba and her team from Convergence, and other speakers and panelists who will be sharing experience at this training, for making out time  to enlighten us on solutions to the funding gaps for SDGs in Africa.

I look forward to the outcome of the training and wish everyone a fruitful engagement.

On this note, I declare the programme open.