AfDB chief urges African finance to aid businesses
Sidi Ould Tah proposed a new framework to align financial institutions with business needs.
African Development Bank Group President Sidi Ould Tah called on the continent's financial sector to better support businesses at the Africa Financial Summit in Luanda on November 3.
Ould Tah stated that for Africa's financial strength to become economic power, financial institutions must match the pace of the businesses they serve. He introduced the New African Financial Architecture for Development (NAFAD) as a framework to improve collaboration and rethink capital mobilisation and risk sharing.
He highlighted a disconnect between the reporting cycles and investment horizons of financial institutions and the business cycles and talent retention needs of companies, identifying this as a cause of lost economic growth in Africa.
Why it mattersAfrican businesses face a disconnect with financial institutions, hindering their ability to translate financial strength into economic power.