- AfDB Shops for $1.2tr to Bridge Investment Gap
The African Development Bank (AfDB) will embark on a roadshow in Abuja next week, to mobilise key stakeholders towards putting together a pipeline of bankable projects ahead of the Africa Investment Forum (AIF).
Through the Africa Investment Forum, the AfDB, and its partners will screen and enhance bankable projects, attract co-investors, and facilitate transactions to close Africa’s investment gaps, estimated at $200 billion to $1.2 trillion a year.
The infrastructure financing needs alone, according to AfDB, “are estimated at between $130billion and $170 billion a year. Today, total commitments stand at just $63 billion in 2016. This represents a financing gap of approximately $67billion to $107 billion a year, in just infrastructure.”
Nigeria’s National Infrastructure Master Plan (NIMP) 2014-2044 estimates that the country needs about $3 trillion over the next 30 years to bridge its infrastructure financing gap.
The AfDB noted that “it is clear that traditional fund providers at different levels of government do not have the required resources. External funding sources are therefore inevitable over the long-term.”
The roadshow is in line with its continued efforts to support Nigeria and other African countries to accelerate the development of infrastructure.
AIF is Africa’s own investment marketplace for accelerated economic transformation – is scheduled for November 7-9 in Johannesburg, South Africa.
Working with multilateral institutions, the private sector, and governments, the AfDB said it is helping Nigeria and other African countries to develop investment-ready projects for investors, fund managers and others managing substantial assets.
The Abuja roadshow will include a briefing session, interaction with key industry players, and presentations from Nigeria’s senior Presidency and Finance Ministry officials on the country’s development priorities and project pipeline that could benefit from the AIF partnership.