Financing for the African private sector will need to accelerate next year. A coalition of development banks has just launched a plan to support African micro, small and medium-sized enterprises (MSMEs) of at least $4 billion. These funds will be mobilized by the end of 2021, by the Association of (15) European Development Finance Institutions (EDFI), the African Development Bank (AfDB), the West African Development Bank (BOAD), the Islamic Society for Private Sector Development (ICD), FinDev Canada and the US International Development Finance Corporation. Other institutions should join the initial coalition to enable a sustainable and inclusive recovery for the African private sector.

"The observation is without appeal. The Covid-19 crisis, which is hitting most countries of the world hard, is jeopardizing decades of private sector growth and job creation in Africa. It is already causing significant setbacks, particularly in terms of unemployment, inequality and poverty across the continent.

The prospects for micro, small and medium-sized enterprises in particular are worrying," warns the French Development Agency (AFD), at the end of the first international summit of public development banks. These MSMEs are nevertheless essential to the economy of the African continent. They represent 90% of the entrepreneurial fabric and 60% of formal jobs. "SMEs generate by far the majority of jobs in Africa. That's why creation, promotion and funding

of these companies are essential for development," said Bruno Wenn, president of the EDFI association, quoted in a statement.

One of the answers to the crisis must be financial: short-term and long-term debt, local currency, equity, subordinated debt, according to Aziz Mebarek, co-founder of the Africinvest group, which specializes in investment and financial services in North Africa and sub-Saharan Africa. It is in this context that this $4 billion support plan is being launched. It aims to support inclusive financial solutions for African MSMEs.