The agreement, signed in Washington, D.C. on the sidelines of the 2026 IMF and World Bank Spring Meetings, signals a push to strengthen how both institutions deploy capital for development finance. The Letter of Intent sets out plans to develop new initiatives and instruments that support knowledge exchange on financial tools, development financing practices and institutional capacity building, with the stated aim of contributing to economic growth and social welfare across member countries.

AfDB and CABEI also indicated an intention to deepen cooperation through a Memorandum of Understanding expected in the near future. Areas under consideration include technical collaboration on risk management approaches and joint participation in capital markets activity.

The signing was carried out by Hassatou N’Sele, Vice President of Finance and Chief Financial Officer of the African Development Bank Group, and Gisela Sánchez, Executive President of CABEI.

The Letter of Intent highlights potential next steps, including the possible structuring of an Exposure Exchange Agreement and participation as investors in bond issuances. Both institutions framed the initiative as a practical mechanism to expand lending headroom and improve capital efficiency, building on shared interests in strengthening development finance operations amid rising global demand for affordable long‑term funding.

The move comes as multilateral development banks face growing pressure to increase lending without compromising financial strength. Balance sheet optimisation has emerged as a key reform pathway, aimed at using existing capital more effectively while maintaining prudent risk standards.

AfDB and CABEI described the Letter of Intent as an opening milestone toward a longer-term strategic partnership designed to unlock additional development financing capacity through coordinated reforms and expanded financial cooperation.

–AfDB/ChannelAfrica–