GTB 737 banner Yudala banner

NEPAD launches initiative to bridge Africa’s $68bn infrastructure finance gap

By News Express on 19/09/2017

Share on facebook Yahoo mail icon Gmail icon

Views: 461

•NEPAD CEO Ibrahim Assane Mayaki
•NEPAD CEO Ibrahim Assane Mayaki

The New Partnership for Africa’s Development (NEPAD) on Monday gathered international investors and CEO-level business leaders at the NASDAQ Stock Market for the launch of its 5% Agenda campaign.

The launch took place five years after a January 2012 African Union Summit adopted the Programme for Infrastructure Development in Africa (PIDA) which sets out 51 cross-border infrastructure programmes and more than 400 actionable projects in four sectors.

According to the World Bank, the continent needs to spend $93 billion annually (44% for energy; 23% for water and sanitation; 20% for transport; 10% for ICTs; and 3% for irrigation) until 2020 to bridge its infrastructure gap, which is currently removing an estimated 2% of GDP growth every year. On the other hand, Africa only managed to close 158 project finance deals with debt totalling $59 billion over the decade 2004-2013, which represents only 5 percent of infrastructure investment needs and 12 percent of the actual financial flows.

The 5% Agenda campaign highlights that only a collaborative public-private approach can efficiently tackle these issues and calls for allocations of institutional investors to African infrastructure to be increased to the declared 5% mark.

Speaking at the launch event in New York, Ibrahim Assane Mayaki, NEPAD Chief Executive Officer, commented: “Infrastructure plays a leading role in supporting growth on the continent. At the same time, it can represent an innovative and attractive asset class for institutional investors with long-term liabilities. By launching the 5% campaign in New York today, we invite investors to take advantage of the wide-ranging opportunities Africa has to offer and to move forward with what can only be a win-win partnership”.

The launch of the campaign gathered high-level international investors and business leaders, including members of the PIDA Continental Business Network (CBN) which is spearheaded by NEPAD and constitutes a CEO-level private sector infrastructure leaders dialogue platform on PIDA.

Tony O. Elumelu, one of Africa’s most prominent entrepreneurs and active participant in the CBN, said: “Africa is getting stronger every day with new business opportunities and innovative ideas but what is still crucially missing is project implementation. A coherent and coordinated approach is needed to mobilise institutional investors while limiting their risk exposure. African governments need to work on creating conducive environments to attract these investments which are so vital for the continent’s growth and development.”

According to a 2016 McKinsey report, institutional investors and banks have $120 trillion in assets that could partially support infrastructure projects.

Now more than ever, Africa needs to tap into this available. As banks face additional regulatory challenges and as governments have limited fiscal space, it is becoming increasingly urgent to unlock additional flows from long-term institutional investors such as insurers, pension funds, and sovereign wealth funds.

For pension and sovereign wealth funds to be able to invest in large-scale infrastructure projects in Africa, a variety of issues need to be addressed to strategically and intentionally facilitate long-term allocations. Chief amongst these matters is the need to reform national and regional regulatory frameworks that guide institutional investment in Africa. Likewise, new capital market products need to be developed that can effectively de-risk credit and hence, allow these African asset owners to allocate finance to African infrastructure as an investable asset class to their portfolio.

All these issues are at the heart of the 5% Agenda roadmap, which is the backbone of NEPAD’s campaign and is foreseen to have the following impact:

Unlocking notable and measurable pools of needed capital to implement regional and domestic infrastructure projects on the continent.

Broadening and deepening the currently very shallow African capital markets, whilst at the same time contributing significantly to regional integration and job creation.

Promoting the development of innovative capital market products that are specific to the continent’s challenges and potential in regards to infrastructure development.

Raising the investment interest of other institutional and non-institutional financiers that so far have been hesitant to include African infrastructure projects as an asset to their investment portfolio based on specific, concrete next steps and project suggestions.

Source News Express

Posted 19/09/2017 11:49:36 AM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

 

You may also like...
Delta Govt. pledges support for youth-friendly maritime institutions...

Sierra Leone’s Deputy High Commissioner kidnapped in Kaduna...

CCC assures EFCC of support

Buhari orders release of $21m to MNJTF on...

Ondo Govt. appeals to striking workers to suspend...

Kidnap suspect nabbed inside aircraft — Thanks to...

Abia State Hospital staff protest over unpaid salaries...

Bomb attack: My survival a mystery – Buhari...

Enugu LG Election: Groups reject PDP candidate for...

BREAKING NEWS: Buhari extends vacation due to sickness...

AIG takes over case of man who named...

AU Summit opens with a focus on Pan-Africanism...

 

Latest News Shocker: How FG secretly reinstated and promoted man declared wanted by EFCC for alleged N195bn fraud Association passes vote of no confidence on banks, urges FG to channel agric loans through credible organisations Anambra Church Masacre: Bishop tackles Police, Anambra State Government WHO sacks Mugabe as goodwill ambassador Abuja residents levy selves to hire private securitymen National Assembly probes DG NEMA as Osinbajo orders negotiation with striking workers FG okays establishment of new schools, hospitals by Turkey SERAP opposes National Assembly’s order to banks to unfreeze Patience Jonathan’s accounts Body of man who jumped into Lagos lagoon recovered 2 days after Buhari returns to Abuja after 4-day foreign trip Scarcity of pilots hits U.S. Air Force 2 die, soldiers shoot 3 others in clash with protesters

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (287,987 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (270,731 views) Shameless Genevieve Nnaji exposes breasts in public (218,492 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (183,986 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (179,620 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (162,371 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (140,749 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (128,800 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (123,768 views) Lagos plane crash: Journalist releases victims’ names (114,259 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (112,232 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (104,588 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (30) Business (2,731) Business Verdict (24) Columnists (758) Complaints & Requests (93) Enterprise & Opportunities (183) Entertainment (396) Features (497) Global Business Monitor (187) International (1,589) Interviews (134) Live Commentary (28) Love Matters (79) News (29,535) Opinion (826) Pidgin (8) Politics (3,991) Religion (645) Sports (1,340) Stock Watch (23) AMA & Al Jazeera Global Update

 

UBA mobile app

CBN Words on marble

 

 

#MonkeyPox outbreak

 

APO Group Partner

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!