The African Development Bank has proposed a US$20bn innovative instrument for financing of Africa’s infrastructure development
The plan, which is likely to be unveiled by the end of this week, has to be approved by the bank’s Board of Governors at the ongoing AfDB 2013 annual meetings in Marrakech, Morocco.
AfDB chief infrastructure economist Shem Simuyemba said, “This is one of the initiatives that the AfDB president, Donald Kaberuka, is pushing as a new instrument for responding to the financing needs of infrastructure in Africa.”
According to Simuyemba, the instrument will be funded largely from African resources. “The AfDB, given its track record, will be able to mobilise funds from pension funds, sovereign bond funds, insurance funds and other resources within Africa,” he added.
The bank executive, however, said that foreign investors were also welcome to provide resources for the instrument.
AfDB director for regional integration and trade Alex Rugamba stated that the instrument will finance infrastructure projects in various African countries that are commercially viable.
Rugamba explained, “Projects that will generate cash flows are typically the ones that will be financed.”
