On Thursday, July 19, 2018, Kenyan President Uhuru Kenyatta launched an urgent appeal for the development and financing of bankable infrastructure projects to support Africa’s development agenda.
This was at the Africa50 General Shareholders’ Meeting held in the Kenyan capital, Nairobi. In his opening remarks, President Kenyatta emphasized how the energy, transport, ICT, water and sanitation sectors offer investment opportunities to the private sector.
“The private sector needs to redouble its efforts and help us bridge Africa’s infrastructure gap. Public funding is limited and there are other competing priorities, “he said.
Uhuru Kenyatta announced that Kenya would double its current stake in Africa50 to US $ 100 million. “We need to have the confidence to believe in and invest in our own infrastructure. Let’s develop our partnership and make Africa50 a success. ”
The continent’s infrastructure needs would require nearly US $ 170 billion a year in funding, with a funding gap of between US $ 68 billion and US $ 108 billion, according to figures from the African Development Bank.
“We must act quickly and urgently,” said Akinwumi Adesina, president of the African Development Bank and chairman of the Africa50 board. Our people are waiting for nothing else. And to underscore the importance of tackling the factors that hinder private investment in infrastructure: high financing costs, weak regulations, tariffs that do not reflect real costs, low profitability and weak regulatory frameworks. public-private partnerships.
In Africa, private financing of infrastructure remains low, averaging around $ 6 billion a year, which dropped to $ 2.6 billion in 2016.
Africa needs new models of infrastructure financing, said Akinwumi Adesina. “We must work wisely to attract higher investment financing levels for infrastructure development in Africa. Globally, savings and private equity represent approximately $ 120 trillion. Africa needs to be creative to attract some of it to the continent, “he said.
To address Africa’s infrastructure financing gap, the African Development Bank has launched the Africa Investment Forum, the first of which will be held in November 2018 in South Africa. The forum, which aims to increase transactions, will bring together representatives from global pension funds and sovereign wealth funds, various institutional investors and key private sector players.
Akinwumi Adesina congratulated President Kenyatta for his country’s ambitious commitment and investments in infrastructure over the last five years. Infrastructure accounts for 77% of the Bank’s portfolio in Kenya.
“Mr. President, you were one of the first African leaders to support the creation of Africa50, which I have the honor to chair,” said Akinwumi Adesina. “The African Development Bank, of which I am the president, has contributed to the creation of Africa50 because we believe that new institutional models are needed to fill the huge financing gap facing Africa’s infrastructure. Africa50 will be a game-changer in infrastructure financing. ”
And call the countries that are not yet to become shareholders of Africa50. The fund currently has 25 African states in its capital.
Africa50’s CEO, Alain Ebobissé, said they are committed to ensuring rapid execution of infrastructure projects in Africa.
Three years after its creation, Africa50 has become a key player in terms of infrastructure investments, which in Africa have market-equivalent rates of return. Africa50 has mobilized more than $ 850 million in infrastructure investments, which it plans to increase to $ 3 billion through its private sector window. Africa50 has made significant investments in a number of shareholder countries, including Egypt (400 MW solar plants), Nigeria, Senegal and Kenya.
