The African Development Bank Group and the Central American Bank for Economic Integration have signed a letter of intent to strengthen capital frameworks, in a move aimed at improving lending capacity and aligning with G20 recommendations on multilateral development bank reforms. The agreement, signed in Washington, D.C. on the sidelines of the IMF-World Bank Spring Meetings 2026, focuses on balance sheet optimisation and the adoption of innovative financial instruments to support development financing. Both institutions said the partnership would promote knowledge sharing on financial tools and strengthen institutional capacity, with the broader goal of supporting economic growth and social outcomes across their member countries. CABEI Executive President Gisela Sánchez described the agreement as the start of a strategic partnership, highlighting potential collaboration in areas such as exposure exchange arrangements and participation in bond issuances. Hassatou N’Sele, Vice President for Finance and Chief Financial Officer of the AfDB, said the signing marked an initial milestone in deepening cooperation, pointing to similarities in sovereign risk profiles and prior collaboration in benchmark bond issuances as a foundation for future engagement. READ ALSO Africa’s Trade Ambitions Hinge on Infrastructure as Costs Undermine Competitiveness, Afreximbank Says Namibia Fast-Tracks Oil Law Reforms Ahead of First Oil Canon Expands Coral Conservation Effort in East Africa with New Video Initiative The two institutions indicated they intend to formalise the relationship through a memorandum of understanding, as they expand cooperation in development finance. CABEI, a regional multilateral lender with 15 member countries, has played a significant role in financing Central America, accounting for roughly half of multilateral development bank funding to the region over the past two decades. It holds strong credit ratings, positioning it to support expanded financial partnerships. Share this: Share on X (Opens in new window) X Share on Facebook (Opens in new window) Facebook Like this:Like Loading... Related