AfDB finances $100 million to speed up Africa’s Infrastructure Plans

The African Development Bank (AfDB) will finance around US$100 million, via its Africa50 Fund, in studies related to carrying out infrastructure projects in Africa, an AfDB source said.

“The Fund principally aims to overcome obstacles to finance infrastructure projects in African countries, such as energy projects whose financing process lasts for 7-10 years.” The source told Amwal Al Ghad.

“The fund seeks to reduce the time of financing process to the half.”

Africa50 Fund’s US$100 finances designed to force the pace on the infrastructure projects’ terms and studies, the source added.

AfDB contributes US$500 million to Africa50 Infrastructure Fund’s equity capital.

The initial capital of Africa50 Fund is at value of US$3 billion, seeking to grow to reach US$10 billion later through the participation of African governments, international financial institutions, insurers, African tycoons, and sovereign funds.

There will be a new round of talks with the AfDB within weeks to tackle Egypt’s share of infrastructure projects on the Africa50’s financing agenda.

Africa50 has been structured as an independent, profit-driven, commercially managed entity dedicated exclusively to Africa’s infrastructure opportunities.

The fund was endorsed in May 2013 by the Finance ministers at AfDB’s Annual Meetings in Marrakech, as a new initiative that will partner with regional institutions for transformational projects. The focus will be trans-continental infrastructure, including priority projects under the Programme for Infrastructure Development in Africa.

In August 2014, Morocco had selected Casablanca as Africa50’s headquarters after evaluating offers of 9 countries.