The African Development Bank has been a major investor in infrastructure development in the electricity, transport, and water sectors across Africa. Cumulative Bank funding for infrastructure on the continent rose by 22% from $66.9 billion in 2016 to $81.6 billion in 2017. During the same period, the value of infrastructure projects with private sector participation has increased from $3.6 billion to $5.2 billion. To meet Africa’s unmet infrastructure needs, project preparation is critical. The Bank has established several project preparation facilities to address the lack of bankable projects and ensure a robust pipeline of projects. These facilities collectively provide $30-50 million annually in support of project preparation. Instruments, such as the Private Sector Credit Enhancement Facility, a credit-risk participation vehicle from the African Development Fund, (ADF)’s concessional window to support Non-Sovereign Operations in low-income countries, are showing tremendous results. With $500 million in credit guarantees, provided through ADF, the Bank has leveraged $2.5 billion of financing into fragile states, with a zero default rate.Source: VENTURES AFRICA
More Stories
Harare’s New Scheme to Curb an Economic Collapse
Africa’s Airspace Faces Steep Competition
Not Enough Females Operating in the African Venture Capital Space
The Digital Economy as an Important Driver of Long-term Growth in Africa
French Winemaker Accused of Using CAR Militia as Security
Freetown Gets New Money
Ghana Gives In and Approaches the IMF
Kenya’s Tech Startup Ecosystem is Looking to Attract even more Overseas Interest with New Hub
G7 Looks to Finance Africa’s Infrastructure Ambitions
South African Businesses are Struggling to Cope as Another Wave of Power Cuts have Hit the Country
MTN Hacked Just as it Launches Mobile Payments in Nigeria
Tanzania, like Many other African Countries, Wants to Stop Depending on Fertiliser from Russia