VENTURES AFRICA – The African Development Bank (AfDB) is in talks with its affiliates aimed at designing a massive infrastructure fund for Africa, sources told Reuters this week.
This confirms what AfDB President, Donald Kaberuka, reiterated in an article published in Ventures Africa Magazine’s first issue of this year.
In the article, Kaberuka was quoted as saying improving the infrastructure in the African continent played a critical role in economic growth and poverty reduction.
“When I assumed the Presidency of the Bank, this was one of the areas where I intended to make a steep change,” Kaberuka was quoted as saying.
AfDB has valuated the requirements for infrastructure in the continent to be running at $100 billion each 12 months for current 10 years.
According to Reuters, the AfDB will this week on Thursday take a decision on the size of the fund they are planning to launch. This will be at AfDB’s annual meeting held in Marrakesh, Morocco.
It is believed that the AfDB is funding about $8 billion for the infrastructure programmes in Africa.
Youssef Ouedraogo, the adviser to the president of AfDB, told Reuters on the sidelines of the bank’s annual assembly.
“There are many wealthy sovereign funds in Africa and among our members, so we will try to negotiate some interesting loans,” Youssef Ouedraogo, the adviser to the president of the bank, told Reuters.
It is understood that the AfDB would receive funding for these projects from Libya, Algeria, Equatorial Guinea and Botswana.
But infrastructure is not only what AfDB is trying to fix in Africa. It is also trying to make sure that there is food security in the continent.
On Tuesday, AfDB and The Gambia endorsed a $26.6 million arrangement to lift the agricultural production and food security in The Gambia.
The Gambia’s Finance and Economic Affairs Minister, Abdou Kolley, said these funds will contribute to the achievement of Gambia’s key development objectives.
“These objectives include reducing poverty by improving food security, increasing and diversifying food production, as well as raising the income of rural producers,” Kolley said.
AfDB’s Vice-President, Aly Abou-Sabaa, said the project symbolizes a milestone in the collaboration between the government and the AfDB.
“More importantly, through this project, The Gambia and AfDB will assist vulnerable groups living in poverty and confronted by climate change,” he stressed.