AFRICAN NATIONS TO GET US$40M FROM AFDB FOR INFRASTRUCTURE DEVELOPMENT

AFDB plans to release US$40m under the Africa Infrastructure Investment Fund (AIIF) to its Regional offices in Africa.

Developing Africa infrastructure is vital if the continent wants to reach the peak of its development. This is why Africa Development Bank (AFDB) is spurring sustainable development and social progress in the continent.

In a bid to achieving their set mission, the Bank has set a new lifeline for infrastructure funding in the continent. Meanwhile, this new lifeline will help provide funds under the Africa Infrastructure Investment Fund (AIIF). This AIIF3 is the third investment from the bank in the last 22 years.

Meanwhile, the bank has approve fund following a 1996 investment in SAIF and the 2010 investment in AIIF2. This AIIF3 fund is worth US$40m with countries like South Africa, Nigeria, Cote d’Ivoire and Kenya as the beneficiaries.

AFDB’s Group Director of infrastructure and Urban development Amadou Oumarou said ”The recent downturn in global community price have lowered the fundraising expectation across the board. He also said the bank will play a counter-cyclical role through this investment.”

The proposal will represent the Bank commitment towards the Continent. Furthermore, the current plans stands to have a positive role given that the fundraising market continue to be challenging. This will now mean that Development Financial Institution (DFIs) will play a leading role towards making it happen.

AIIF3 will boost and create a quantifiable and measurable social and environmental impact by supporting energy and  transport infrastructure access across Sub-Sahara Africa. It will also support the creation of over 1500 jobs at the project level and also enhance capacity building.

Meanwhile, AIIF3 is perfectly inline with the banks operational priorities. This priorities include Industrialize Africa, Light up and Power Africa and also integrate Africa is part of their High five agenda towards improving the continent infrastructure.

The fund was approve by the Board of Directors of the Africa Development Bank.

 

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