Spain is taking the lead in developing innovative financing strategies to support Africa, with Economy Minister Carlos Cuerpo urging other EU nations to follow suit. With the 4th International Conference on Financing for Development scheduled in Seville next year, Spain is deepening ties with Africa through initiatives that promote economic growth and climate resilience.
Prime Minister Pedro Sánchez’s government has launched several bilateral and multilateral projects aimed at poverty alleviation, youth employment, and economic development in Africa.
Cuerpo recently joined World Bank President Ajay Banga to announce Spain’s early commitment of €400 million ($432 million) to the International Development Association (IDA), a 37% increase from the previous cycle, encouraging other nations to support the IDA’s $100 billion target. Additionally, Spain has redirected 1.5 billion of its Special Drawing Rights (SDRs) to the IMF’s Resilience and Sustainability Trust (RST), focusing on climate-focused projects in Madagascar and Tanzania, underscoring Spain’s commitment to climate action in developing nations.
Spain has also pioneered “pause clauses” in its loan agreements, allowing repayment deferrals for countries affected by crises like famine. This feature will be included in a $19 million credit for Rwanda and a digitalisation project in Senegal. Moreover, Spain has launched the Alliance Afrique Avance (Africa Advances Alliance), a development initiative in West Africa starting with Senegal, to promote local job creation and youth employment, with plans to extend it to The Gambia.
As Spain’s creative approach to financing gains traction, Cuerpo emphasised that the upcoming UN summit in Seville will be a crucial platform for advancing debt relief and development funding. Through alliances and innovative frameworks, Spain is setting the stage for a stronger partnership with Africa, bridging ties between the EU and its southern neighbours and positioning itself as a leader in financing Africa’s development and resilience.
Further Africa
