[ad_1]
(Agence Ecofin) – On the occasion of the Africa50 meeting held in Nairobi, Kenya, on 19 July 2018, Kenyan Presidents Uhuru Kenyatta and the African Development Bank (AfDB) launched an urgent appeal favoring the development and financing of bankable infrastructure projects to support Africa's growth.
In his opening speech, President Kenyatta stated that support for bankable projects in the fields of energy, transport, ICT, water and sanitation offers unprecedented opportunities for private sector participation. "The private sector needs to step up and help us bridge the infrastructure gap on the African continent. Public funding is limited and there are competing priorities " he said.
Uhuru Kenyatta also announced that Kenya would double its equity investment in the Africa50 fund by making it to $ 100 million. "We must have the confidence to trust and invest in our own infrastructure. Let's cultivate our partnership and make Africa50 a success ".
To this end, it should be noted that, according to statistics provided by the ADB, the continent's infrastructure financing needs amount to nearly $ 170 billion. per year, leaving a funding gap of $ 68 to $ 108 billion.
For his part, Akinwumi Adesina, president of Africa50, argued that "we must act quickly and urgently" . He also stressed the importance of addressing the factors that hinder private sector infrastructure investment, including high funding costs, lack of cost-reflective tariffs, low profitability and weak regulatory frameworks.
All the reasons why private sector financing of infrastructure in Africa remains low, averaging $ 6 billion a year. In 2016, the figure reached $ 2.6 billion.
Stressing the need for the continent to adopt new models of financing infrastructure, Akinwumi Adesina said that "we must work smart to attract levels higher investment financing for infrastructure development in Africa. Globally, there is approximately $ 120 trillion in savings and private equity. Africa must creatively attract some of this capital to the continent. "
In addition, the President of the AfDB did not fail to congratulate President Kenyatta for the commitment and bold investments his country in infrastructure development over the last five years. Infrastructure accounts for 77% of the Bank's portfolio in Kenya.
He also urged countries that have not yet become shareholders of Africa50 to do so. The fund currently has an equity base of 25 African states
Note that three years after its creation, the Africa50 fund has become a key player in infrastructure investments, with commercial rates of return in Africa. It has leveraged more than $ 850 million in infrastructure investments and plans to leverage up to $ 3 billion through its private sector window.
Africa50 has made significant investments in a number of shareholder countries, particularly in Egypt (400 MW solar plants), Nigeria, Senegal and Kenya, among others.
[ad_2]
Source link
