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The African Development Bank (AfDB), Development Bank of Southern Africa (DBSA), and key institutional investors—Academy Securities, Africa50, and Newmarket—have signed a Letter of Intent to establish a multi-originator synthetic securitization platform. Announced at the 2024 Africa Investment Forum in Rabat, Morocco, the initiative aims to mobilize private capital for high-impact projects across Africa.
Building on AfDB’s successful $1 billion Room to Run program in 2018, the platform will aggregate a $1.5-2 billion portfolio of diversified assets. Designed to de-risk development finance institutions’ balance sheets, it will increase lending capacity for critical sectors like infrastructure, climate finance, and financial intermediation.
The platform will transfer mezzanine tranche credit risk to private investors while retaining senior tranche risk within DFIs, offering regulatory relief and unlocking vital resources for development. AfDB President Dr. Akinwumi Adesina highlighted its potential to bridge Africa’s financing gaps, calling it “a transformative collaboration between multilateral banks and private investors.”
With support for sustainability and ESG objectives, the platform aligns with AfDB’s High 5s, the African Union’s Agenda 2063, and the UN’s Sustainable Development Goals. As it progresses, it promises to revolutionize how private capital is mobilized for Africa’s growth and sustainable development.
