Funding will increase African development – AfDB

Increased funding has been described as vital to accelerate Africa’s development.

The president of the African Development Bank (AfDB) Akinwumi Adesina said in a statement in Nairobi that the bank was pushing for African nations mobilizing domestic resources required to execute the bank’s five developmental priorities.

The priorities are dubbed the “High 5s”, and include: Light up and power Africa; feed Africa; integrate Africa; industrialize Africa; and improve quality of life for the people of Africa.

The High 5s are the accelerators for Africa to achieve the Sustainable Development Goals developed by AfDB. They were announced by Adesina in September 2015.

Financing gap to meet these needs would be huge, some as large as 162 billion U.S. dollars a year.

We re investing in the development and integration of capital markets, including the establishment of an African Domestic Bond Index and a 200-million-dollar African Domestic Bond Fund to deepen liquidity in local bond markets,” he said.

Adesina said that the bank had issued local currency bonds in 11 countries, including Kenya, South Africa, Egypt, Ghana, Nigeria, Botswana and Uganda.

Using guarantees, we leverage over four times our equity resources.Our 87 million dollars investment in the NEPAD Infrastructure Project Preparation Facility has led to mobilisation of about eight billion dollars to support major regional infrastructure projects and programmes,” he said.

He added that the bank had rolled out an investment vehicle Africa50, for developing and financing infrastructure, which has so far raised 830 million dollars and plans to attract 3 billion dollars in the medium term.

Adesina said AfDB has the capacity to deliver more for Africa but needs substantial financing wind behind its sails.