DFIs pivotal to meeting fiscal gaps

Monday, November 28, 2022 | 430 Views |

The Association of African Development and Finance Institutions (AADFI) CEOs board with the Minister of Entrepreneurship Karabo Gare during the just ended (AADFI) CEOs Forum in Botswana. The CEO's Forum atrtracted participants from the AADFI); the participants were mainly CEO's high ranking officials from members institutions of the above association and Government officials PIC: KENNEDY RAMOKONE

The role of direct foreign investment (DFI) which is to support governments through counter cynical measures including funding of COVID-19-related development projects has become more important than ever, says Minister of Entrepreneurship, Karabo Gare.

Speaking at the 2022 Association of African Development and Finance Institutions (AADFI) CEO’s forum, Gare said with the increasingly limited resources from governments, DFIs are now expected to mobilise resources to meet the fiscal gaps and continue to meet their developmental mandates across the various affected sectors of their economies.

“It will therefore be imperative that DFIs, which are already threatened by shifts in demographics, societal needs, economic and market conditions as well as political, legal, and regulatory regimes, reposition themselves to raise the necessary resources to assist governments,” he said. Gare said the DFIs were set up to address prevailing market failures and to reach underserved segments.

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