The African Development Bank (AfDB) is working with leading global development finance institutions to set up a mutualised co-guarantee platform to de-risk investments and facilitate projects that have the capacity of transforming the continent under the Africa Investment Forum (AIF)
AfDB is positioning the AIF, scheduled for South Africa, from 7-9 November 2018, as a platform to improve the ease of doing business in Africa by advancing and promoting investment friendly regulations.
Speaking at a roadshow on the AIF held in Abuja, the special advisor to the Nigerian President and coordinator of the country’s Economic Recovery and Growth Plan (ERGP) Unit, Folarin Ayalande, described the lending de-risking component of AIF as a game changer and assured of the support of the Nigerian government.
“Nigeria’s Economic Recovery and Growth Plan require billions of dollars of investment to deliver on its growth and job-creation targets. We will collaborate with the private sector and the AIF by targeting opportunity-driven entrepreneurs by upgrading skills, developing business clusters and economic corridors. These are critical factors to developing a buoyant and productive industrial sector in Nigeria,” he said.
Senior Director for Nigeria Country Office of the AfDB, Ebrima Faal, stressed the critical need to change the current funding mix and create partnerships to finance infrastructure and other projects in Africa.
“Nigeria’s infrastructure cumulative financing needs are estimated to reach US$3 trillion by 2044 or about US$100bn annually. This is all happening at a time when public sector finances are extremely pressured,” Faal noted.
“AIF will work closely with investors and project sponsors to enable them to increase trade and investment in local and global markets, ensuring that projects are able to secure adequate and appropriate finance,” said Stella Kilonzo, senior director at AIF.
Working with multilateral institutions, the private sector and governments, the Bank is helping Nigeria and other African countries to fine-tune investment-ready projects for investors, fund managers and others managing substantial assets ahead of the AIF in November 2018.