Lusophone Compact Advances Private Sector Growth Across African Member States
Leaders from Lusophone Compact member states have met in Washington, DC, to advance cooperation and unlock greater private sector investment across Portuguese-speaking African countries.
The high-level meeting, held at the headquarters of the International Finance Corporation, brought together senior government officials and development partners, including Cabo Verde’s Deputy Prime Minister Olavo Avelino Garcia Correia and representatives from member states such as Brazil, Mozambique, Angola and Portugal.
Convened on the sidelines of the World Bank Spring Meetings, the session was led by Marie-Laure Akin-Olugbade of the African Development Bank Group and Ethiopis Tafara.
The committee reviewed progress under its 2024–2027 Work Programme, noting significant gains in investment mobilisation and institutional collaboration. Since its inception, the Compact has approved nearly $928 million in investments across Lusophone Africa, with the portfolio expanding by 26 per cent during the latest reporting period.
A key highlight of the meeting was the extension of the Lusophone Compact Guarantee Programme (LCGP) by a further 12 months, alongside the rollout of its first guaranteed transaction.
The Cabeólica wind energy expansion project in Cabo Verde has been added to the programme’s portfolio, backed by 85 per cent loan coverage, demonstrating growing confidence in renewable energy investments in the region.
Institutional partners also reported increased engagement. The IFC has committed substantial financing across Lusophone Africa, including major investments in Mozambique and Angola, while the African Trade Insurance Agency has scaled up risk insurance support and identified significant market opportunities across member countries.
The Steering Committee further endorsed a forward-looking agenda aimed at accelerating implementation. Key priorities include expanding bankable project pipelines, operationalising the Lusophone Compact Trust Fund, strengthening risk mitigation instruments, improving coordination among partners, and advancing regional initiatives in energy, agribusiness and trade.
In his closing remarks, Dr Correia welcomed the progress made but stressed the need for stronger financial commitments and enhanced collaboration. He highlighted Cabo Verde’s investment priorities, including clean energy, tourism infrastructure and digital connectivity, and called for greater participation from Brazil within the Compact.
Mr Tafara highlighted the importance of scaling up impact, describing the Lusophone Compact as a strong example of South–South and triangular cooperation linking Africa, Europe and Latin America.
The initiative, established in 2018, is a tripartite partnership led by the African Development Bank Group in collaboration with Portugal, Brazil and Portuguese-speaking African countries. It aims to mobilise investment, provide technical assistance and deploy risk mitigation tools to drive sustainable economic growth and job creation across the region.
Stakeholders at the meeting reaffirmed their commitment to strengthening the Compact as a vehicle for inclusive development, with a focus on supporting youth employment, empowering women and building resilient economies across Lusophone Africa.
