The African Development Bank (AfDB) and Interpeace, an international organisation for peace building based in Switzerland have agreed to promote peace in Africa.

The organisations in a statement on AfDB’s website, signed a Memorandum of Understanding (MoU) to jointly promote economic investment and social development that positively impacts peace.

The signing took place during the Africa Resilience Forum which opened on Oct. 3, in the Ivorian commercial capital Abidjan.

Vice-President for Regional Development, Integration and Business Delivery AfDB, Marie-Laure Akin-Olugbade signed on behalf of her Bank, while Elhadj As Sy, a member of Interpeace’s governing board signed for her organisation.

According to the statement, the MoU is accompanied by a practical work plan with goals and outcome targets.

It said this underscored the innovative partnership between Africa’s premier development finance institution and the Finance for Peace Initiative by Interpeace.

The AfDB vice-president Akin-Olugbade highlighted the importance of pursuing innovative approaches to support peace and security on the continent.

According to her, AfDB is pioneering these efforts through the Security-Indexed Investment Bond (SIIB) Initiative, endorsed at the AU Heads of State Summit in February 2022.

She said the proposed bonds were aimed at raising additional financing at scale, including through capital markets to mitigate structural drivers of violence and conflict.

“The initiative also aims to offset the fiscal implications of elevated security sector spending.

“The Finance for Peace Initiative, implemented by Interpeace, and supported by Germany, complements the bank’s own efforts in this space.

“As it aims to develop protocols and pilots around peace finance, including for a peace bond asset class,” Akin-Olugbade said.

The representative of the Interpeace governing board, As Sy, expressed the organisation’s delight to formalise its partnership with AfDB through the MoU.

According to As Sy, this strong collaboration between AfDB and Interpeace affirms our joint commitment to catalyse private and public capital to work for a more inclusive, equitable and peaceful world.

“This partnership will demonstrate to the wider multilateral and international development financing system the need, benefits, potential and practicality of Peace Finance approaches on

the continent and beyond.

“It will grow Peace Finance as a thematic investing approach,by developing early and successful pipeline development of Peace Finance.

“And by fostering on-the-ground networks and capacities in Peace Finance in Africa,’’ he said.

The News Agency of Nigeria (NAN) reports that the areas for collaboration outlined by the MoU include: Technical and capacity strengthening for embedding Peace Finance approaches.

This approach realise peace impact into AfDB’s sovereign and non-sovereign operations and policy dialogue.

“Advisory support and collaboration to develop a pipeline of Peace Finance structures that realise peace impacts.

“Multi-stakeholder engagement and field building for wider political and investor support for Peace Finance are also included.

As part of the partnership, a joint research project on peace-positive investment opportunities in Mozambique was inaugurated by the two organisations recently.