The African Development Bank Group (AfDB) and the European Stability Mechanism(ESM) have signed a Memorandum of Understanding (MoU) to formalise and strengthen cooperation between the two institutions.
This is contained in a statement by the AfDB on its Website.
It said the agreement was signed on the sidelines of the ongoing 2026 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group in Washington, D.C.
The ESM is a permanent intergovernmental organisation based in Luxembourg, established in 2012 to serve as a lender of last resort for Eurozone countries in financial crisis.
It safeguards financial stability by providing loans, precautionary financial assistance, and debt market support to members, funded through bond issues rather than direct taxpayer funds
The AfDB said the MoU was expected to enhance collaboration in capacity building, research, and knowledge sharing between both institutions.
The bank said it would also promote technical dialogue, information exchange, joint seminars, and staff-level engagements, in line with their respective internal procedures.
President of the AfDB, Sidi Ould Tah, described the agreement as a reflection of commitment to mutually beneficial exchanges.
Tah said the partnership would strengthen the bank’s ability to leverage international best practices in advancing financial stability initiatives in Africa.
He added that the cooperation aligned with ongoing efforts to establish an African Financial Stability Mechanism.
According to him, the initiative has been endorsed by African Union Heads of State and Government.
Tah said that Africa remained the only region without a dedicated regional financial stability mechanism.
He said the collaboration with the ESM would play a vital role in safeguarding financial stability across the continent.
The Managing Director of the ESM, Pierre Gramegna, said the agreement came at a critical time of rising global uncertainties.
“In a world that has become more prone to frequent shocks, preparedness through cooperation is essential,” Gramegna said.He said that the MoU provided a structured framework to deepen dialogue and share experience in market funding, governance, and crisis prevention and management.
