Home / Africa/International / AfDB, Made in Africa Foundation to raise $22bn for Africa’s infrastructure projects

AfDB, Made in Africa Foundation to raise $22bn for Africa’s infrastructure projects

Share this with more people!

AfDBThe African Development Bank (AfDB) has proposed plans to float Africa’s first infrastructure bonds to member nations to raise up to $22 billion for investments in infrastructure projects such as ports, railways, roads and energy, across the African continent.

This follows a recommendation by Made In Africa Foundation (MIAF) for AfDB to offer the opportunity to invest in the infrastructure bonds to all, which would be in addition to funds committed by member governments.

It also brings to reality, an initiative first raised at the March 2009 conference on Growth Corridors, hosted by MIAF’s Ozwald Boateng and UK Foreign Minister, David Miliband.

According to a statement issued by MIAF partner – Nigerian oil company, Atlantic Energy Tuesday, September 25, by opening up the bond offering to everyone – private institutions such as global banks and pension funds, individuals and corporations – there would be increased transparency, and hopefully better governance, not to mention increased flows of money to fund projects.

It is envisaged that the $22bn raised would take advantage of the AfDB’s AAA rating, which would make its African bonds a more secure investment than those issued by a number of European states potentially, making it one of the more attractive opportunities in the global debt capital markets.

AfDB and MIAF believe the investment of $22bn in infrastructure projects across Africa would, if implemented properly, have a positive effect on the continent’s GDP, raising it by an estimated 2%.

They are also positive that this would lift millions out of poverty and dramatically decrease regional disparity, saying the initiative’s effect on Africa could be similar to the Marshall Plan which was a huge stimulus for growth on the European continent in the post war period.

Presently, the AfDB envisages that the $22bn investment will only be offered to member states of Africa.

AfDB says its President, Donald Kaberuka, is expected to ask African governments at the IMF summit in Tokyo this October to commit 5% of their foreign currency reserves to take up the opportunity.

MIAF on its part believes that the estimated trillion dollar savings pools controlled by the African middle class and the African Diaspora, deserve to be offered this opportunity to grow and develop their own continent.

“If combined with favourable tax treatment, it would be a chance for many to repatriate the ‘missing billions’ that have dissipated from Africa’s shores to low interest tax havens over the past decades. Let Africans have the chance to show their belief in their own continent,” MIAF says.

For his part, Ozwald Boateng stated; “The global African diaspora is a trillion dollar economy already investing  $30bn in remittances to the continent every year – The AfDB’s ‘triple A’ guarantee would provide security and an excellent return for them. How can we ignore them?”

Commenting on the initiative, Nigerian businessman and co-founder of MIAF, Kola Aluko, said, “We have made an Enduring Commitment to develop Africa and its abundant resources through energy and infrastructural development“, “AfDB’s initiative will enhance Africa’s growth potential dramatically. It is to be applauded.”

Atlantic Energy Co-Ceo, Scott Aitken also stated; “Atlantic Energy is pleased with the AfDB’s initiative, it will encourage infrastructural development much like Atlantic Energy and the Made in Africa Foundation has sought to promote, foster an upswing in infrastructural development across Africa and hopefully, lead to more initiatives like this in the near future.”

Made In Africa Foundation (MIAF) was founded in 2011 by Mr. Boateng, Africa’s foremost designer, together with prominent Nigerian businessman Kola Aluko and independent Nigerian oil company, Atlantic Energy, to support first-stage funding of infrastructure projects in Africa.

By Edmund Smith-Asante

Share this with more people!

Check Also

2022 West Africa Development Outlook proposes increased sub-regional trade, structural transformation

The ECOWAS Bank for Investment and Development (EBID) has officially released the 2022 edition of …

One comment

  1. This is very impressive so long as Leaders in Ghana, Africa sincerely stick with and stop their backward mentality which have held Ghana, the rest of Africa behind. Sooner the better especially the despora BONDS as well as BONDs within the continent. Also local rural bonds will also help. THANKS TO MR. BOATENG with such great idea and Ghana need a lot mind such as this and also across Africa.