The African Development Bank (AfDB) and the IFC, a member of the World Bank Group, signed on Wednesday a partnership agreement that admits the IFC as the first institutional partner of the Development Finance Compact for Portuguese-speaking African Countries (PALOP), or the Lusophone Compact.

To reach the agreement IFC submitted a proposal for partnership in the initiative that was accepted by the Lusophone Pact Steering Committee, based on the Pact's Framework of Membership Criteria and Partnership Eligibility Criteria adopted in December 2020.

"We look forward to working together to increase private sector investments in Lusophone Pact member countries," said ADB Vice President for Corporate Services and Human Resources and Chair of the Lusophone Pact Steering Committee, Mateus Magala.

"We see this signing of the pact for Lusophone Africa and its integrated development plan as a continuation of our work, but now maximized to leverage the skills, knowledge and funding brought by each partner," said IFC Regional Vice President for Africa Sergio Pimenta.

Acceptance into the Lusophone Pact is based on two general principles: support for the initiative's goal of accelerating inclusive private sector growth and promoting the regional integration of Portuguese-speaking African countries, and the provision of specific, value-added contributions aligned with the anchors of the initiative.

The Pact for Lusophone Africa promotes private sector development by providing risk mitigation, financing instruments, and technical assistance to encourage businesses in member countries.