The plan which is likely to be unveiled by the end of this week must be approved by the Bank’s Board of Governors at the ongoing AfDB 2013 Annual Meetings in Marrakech, Morocco.
“This is one of the initiatives our President Donald Kaberuka is pushing as a new instrument for responding to the financing needs of infrastructure in Africa,” said AfDB’s Chief Infrastructure Economist, Mr Shem Simuyemba at a press briefing May 28, 2013.
According to Simuyemba, the instrument will be funded largely from African resources.
“The AfDB, given its track record, will be able to mobilize funds from pension funds, sovereign bond funds, insurance funds and other resources within Africa,” Simuyemba told journalists.
He was, however, quick to add that foreign investors can also provide resources for the instrument.
Mr Alex Rugamba, the AfDB’s Director for Regional Integration and Trade stated that the instrument will finance African projects that are commercially viable.
“Projects that will generate cash flows are the typical ones that will be financed,” Mr Rugamba explained on the specific infrastructural projects the instrument will be set to finance.
He announced that official details of the instrument will be given in the course of the week.
By Ekow Quandzie in Marrakech, Morocco