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Tag: AfDB

  • AfDB okays $70m loan for Ebonyi road project

    The African Development Bank (AfDB) has approved a $70 million  loan for a road project in Ebonyi.

    In a statement, the bank said it would provide $40 million. Its co-financier, the Africa Growing Together Fund (AGTF) would contribute $30 million.

    It also said the bank group’s funding would cover the rehabilitation and asphalting of a 51-kilometre stretch between Nwezenvi and N’Doko, and part of the corridor between N’Doko and Ezzamgbo spanning 38.91kilometre.

    Read also: Africa has potential to become net exporter of agricultural commodities – AfDB

    The bank noted that the project was expected to be completed in five years. AfDB said the project would aid the agricultural state of Ebonyi’s aspiration to develop special agro-industrial zones dedicated to processing of subsistence crops.

    “It will improve road safety and accessibility of farming communities and small-scale industrial areas. Some 1,400 jobs will be created during the construction phase.

    “Once completed, the road network is expected to serve also as an international link between Ebonyi State and Cameroun, in addition to connecting Ebonyi to Benue and Enugu,” it said. The bank added that the project was in line with its development agenda.

  • AfDB approves $70m loan for road project in Ebonyi

    The African Development Bank (AfDB) has approved a $70 million loan for a road project in Ebonyi State. The bank said on its website yesterday  that it would provide $40 million, while its co-financier, the Africa Growing Together Fund (AGTF), would contribute $30 million for the project.

    It also said that the bank group’s funding would cover the rehabilitation and asphalting of a 51 km stretch between Nwezenvi and N’Doko, and part of the corridor between N’Doko and Ezzamgbo spanning 38.91 km. The bank noted that the project was expected to be completed in five years. AfDB said the project would aid the agricultural state of Ebonyi’s aspiration to develop special agro-industrial zones dedicated to processing of subsistence crops.

    “It will improve road safety and accessibility of farming communities and small-scale industrial areas. Some 1,400 jobs will be created during the construction phase. “Once completed, the road network is expected to serve also as an international link between the State of Ebonyi and Nigeria’s eastern neighbour, Cameroun, in addition to connecting Ebonyi to Benue and Enugu,” it said. The bank added that the project was in line with its development agenda. It said that the project attested to its commitment to improve the quality of life of Africans by improving accessibility and road safety in its member countries.

  • Africa has potential to become net exporter of agricultural commodities – AfDB

    Africa has the potential to become a net exporter of agricultural commodities, replacing imports worth more than 110 billion dollars.

    The African Development Bank (AfDB) said this in a statement issued its Communication and External Relations Department.

    According to the bank, the continent can also double its market share for select processed commodities.

    The bank said Africa’s agribusiness sector was predicted to reach one trillion dollars by 2030, describing it as the next “oil sector”.

    According to the statement, Nigeria is in a position to provide leadership in Africa’s agribusiness sector.

    It explained that this was necessary because of its vast agricultural resources and existing drive to transform its subsistence agriculture economy into a major global player.

    To this end, AfDB said that it had concluded plans to host an investment forum on its Special Agro-Industrial Processing Zones (SAPZ) initiative in Abuja on April 30.

    Read also: AfDB approves $70m loan for road project in Ebonyi

    It explained that SAPZs had been designed to concentrate on agro-processing activities within areas of high agricultural potential in order to increase productivity and competitiveness.

    The bank said the forum would update stakeholders on the progress made in the establishment of SAPZs and to secure the commitment of key agribusiness companies and banks.

    It added that part of it would be planning, investment and implementation of priority SAPZs in Nigeria.

    “The bank, together with its development partners is investing heavily in these projects in order to rapidly scale up agricultural production.

    “The initiative will be the result of strong public and private sector partnerships.

    “The innovative Special Agro-Industrial Processing Zones initiative will provide millions of young rural men and women with unprecedented employment and entrepreneurship opportunities,” it added. (NAN)

  • AfDB seeks good tariff structure for Nigeria

    AFRICAN Development Bank (AfDB) President Akinwumi Adesina is pushing for good and cost-reflective tariff structure to make Nigeria attractive to investors.

    Dr. Adesina urged also the Federal Government to address the liquidity constraints in the power sector as well as diversifying to other renewable energy sources as key to ending the prevailing energy crisis.

    According to the AfDB President, the bank has invested over $400 million in the Transmission Company of Nigeria (TCN) to support the nation’s power transmission

    Adesina spoke with State House reporters after holding talks with President Muhammadu Buhari in Abuja. He added that without a cost-reflective tariff structure, investors would continue to shun the sector.

    Responding to a question on what strategy the country should adopt to address the energy crisis, Adesina said: “I think there is no doubt that Nigeria continues to work a lot of power, without power you can’t do anything, industries can’t develop without power.

    So, I commend the efforts that are being made. There are three components, one, I think we need to get the tariff structure because if you don’t have good cost reflective tariff structure, investments from private sector becomes very difficult in the energy sector.

    “The second is that liquidity constraints in the power sector get addressed. We in the bank have invested over $400 million in the TCN to support it, we have also provided risks guarantees to Embet to be able to guarantee the risk of non-repayment to free up the liquidity constraints.

    “But at the end of the day, it’s to diversify the energy subsets that we have. We have gas here, we should use lot of gas; we also have hydro and solar. The AfDB is investing heavily right now in the north, in the Jigawa area in solar projects. You know, God is good to Africa and He gave us tremendous amount of sunshine, water, everything is good for Africa, all we need to do is take a cable and connect to the sun and we will be fine. So we just have to optimise the renewable energy potential that we have.”

    He, however, commended the effort of economic growth and reform programme of the government.

    “I’m pleased with the role the African Development Bank has played and Mr. President was very appreciative in the role we played in terms of the general budget support of the government. Look, Nigeria is a big country, Nigeria has to be a power house and I am sure it will be,” Adesina said.

    On his mission to the Presidential Villa, the AfDB boss said: “First and foremost, I came to see Mr. President to thank him for the leadership he is providing both on the continent and the region.

    “As you know, the continent faces quite a number of challenges in terms of security and he has put security as very important thing. Obviously, trade and investments is not going to happen unless you have security within the region.

    “Secondly, to congratulate him on his re-election and to brief him about what the bank is doing in Nigeria. As you know, I was elected AfDB president with President Buhari’s support and the supports of former presidents Goodluck Jonathan and Olusegun Obasanjo, as well as all the heads.

    “So, I came to say thank you and also came to give an account of what is happening at the bank. And quite a lot has happened at the bank in the last three years. We have 60 operations in Nigeria for a total of $4.5 billion and about $2.8 billion of that is in the private sector in the banking industry, financial sector, in particular about $1.7 billion in the public sector.

    “We have very exciting projects here. One is the transmission of power. Mr. President mentioned it to me that power continues to be a problem. We have invested over $4 billion in the TCN to continue to improve the power transmission.

    “We have also invested heavily in the northeast of Nigeria, we have put in almost $258 million to support the rehabilitation both in terms of health, education, sanitation and water.

    “We have also invested in mobilising financing for the country. I briefed Mr. President that Nigeria continues to be investment frontier and that the African Investment Forum which the African Development Bank held last year, we were able to mobilize about $38.7 billion of investments to Africa in less than 72 hours, about $7.1 billion of that actually came to Nigeria.

    “I also briefed about the future of what we are going to be doing here. I spoke to him about the support of the bank being crucial because as you know Nigeria is the largest shareholder of the African Development Bank and leaders have to lead.”

     

     

  • AfDB to US: scale up African investment

    African Development Bank (AfDB) President has called on the United States private sector to increase its investment in Africa.

    Its President Akinwumi Adesina spoke at an event hosted by law firm Orrick, Herrington & Sutcliffe in Washington, DC, taking place alongside the World Bank-International Monetary Fund (IMF) spring meetings and took the opportunity to address his call for action to an audience, including US congresswoman Karen Bass, chair of the house foreign relations committee on Africa, and Thomas Hardy, the acting director of the US Trade and Development Agency as well as development and funding executives.

    The remarks echoed those he made two years ago at the 2017 US-Africa Business Summit in Washington, at which he called for a closer relationship between the US and the African continent.

    “It is time to turn around the declining investments of the US in Africa. As the world’s private sector leader, the United States has a unique role to play in increasing investments in Africa and expanding opportunities for the US private sector,” he said.

    The US government unveiled its new plan for Africa last December, which it described as a change from “indiscriminate aid” and a counter to what it called “predatory” practices by China and Russia, particularly the Chinese debt racked up by many nations, although the plan’s critics accused it of similar flaws and a simplistic approach.

    “Now is the time to scale up and take advantage of opportunities that other global players are already investing in,” said Adesina, a former  Agriculture minister. Under the presidency of Barack Obama, US investment was largely left to the private sector until quite late in his administration and Adesina made a direct appeal to US businesses, saying: “I strongly encourage you to look at Africa from an investment lens and not a development lens. Africa is a continent of huge untapped opportunities in power, infrastructure, IT and agriculture, which many other global players are already beginning to realise.”

    In recent years, governments in China, Japan, Russia, the United Kingdom, France and Europe have all been taking a proactive role in investing and in helping their businesses have greater reach on the continent, while competition over development finance is growing, and Congresswoman Bass told the event that “Africa is fast becoming the continent of the future”, continuing:

    “This discussion comes at a critical juncture for the future of Africa. It is widely accepted that Africa is an investment hub. I personally and many of my colleagues will continue to advocate for full funding or increased funding to the bank (AfDB).”

    Bass said the US recognised the need for infrastructure investment “to achieve both structural transformation and market integration” and would continue to look for ways to help generate further investment, noting that the AfDB’s High fives policy – focusing on powering, feeding, industrialising, integrating and improving the quality of life on the continent, was consistent with  Congress’ own policy priorities. “Members of the US Congress are your allies on this front,” she said.

    Adesina also took the opportunity to promote the Africa Investment Forum, hosted by the AfDB in November last year, saying projects worth USD 38.7 billion has received interest at the event, which “exceeded all expectations”.

    AfDB has announced investment in off-grid energy in Democratic Republic of the Congo, energy cooperatives in Nigeria and Ethiopia, and renewable energy, on the back of USD 7.24 billion in funding which it is due to receive from capital markets this year.

  • AfDB okays $15m investment for Nigeria’s credit firm

    The African Development Bank (AfDB) at the weekend approved $15 million investment package to Infrastructure Credit Guarantee Company (InfraCredit), to support infrastructure financing through the domestic debt capital markets in Nigeria.

    The bank said the investment package comprise a subordinated loan of $10 million and a risk sharing facility of up to $5 million. This intervention will promote local currency infrastructure financing, and further development of the domestic capital market.

    InfraCredit is a specialised infrastructure credit guarantee company, established to enhance local currency debt instruments – mainly bonds, to finance eligible infrastructure projects in Nigeria. It is intended to uplift the credit rating of such bonds, allowing institutional investors to include them in their portfolios.

    InfraCredit was founded by the Nigerian Sovereign Investment Authority (NSIA) in collaboration with GuarantCo (part of the Private Infrastructure Development Group). These initial investors have been joined by the Africa Finance Corporation (AFC) and KfW, the German Development Bank.

    The AfDB’s investment in InfraCredit will catalyse local institutional investor funds, including pension funds, into financing long-term infrastructure projects through the local bond markets. The investment will boost InfraCredit’s qualifying capital base through the subordinated loan; it will also improve its capacity to expand its guarantee business through the proposed risk sharing arrangement.

    Through this intervention, the bank is helping to stimulate local currency financing across diverse infrastructure transactions, thereby improving economic diversification and competitiveness, as well as promoting more equitable growth, strengthening local value chains and financial markets in Nigeria. InfraCredit’s operations will catalyse infrastructure investments in critical sectors such as renewable energy, housing, transportation, agricultural infrastructure, and telecommunications, which are critical for the country’s economic development. These also align with the Bank’s High 5 agenda.

     

  • AfDB board approves $4.8m grant for trade

    The Board of the African Development Bank (AfDB) has okayed an institutional support grant of $4.8 million to the African Union (AU) to accelerate the African Continental Free Trade Area Agreement (AfCFTA), which received its 22nd ratification on April 2, bringing the agreement into force.

    The AfCFTA is a major force for continental integration. It will expand intra-African trade by up to $35 billion per year and usher in freedom of movement for goods, services and people across the continent’s internal borders, with a regime of reduced tariffs and non-tariff barriers to cut the cost of doing business on the continent. It will also boost agriculture and industrial exports by up to $66 billion per year.

    The bank’s grant is targeted at laying the institutional foundations for the AfCFTA implementation secretariat and the roll out of the implementation programmes.

    “The momentum is now in full swing.

    ”It is crucial to establish a robust, efficient, purpose-driven secretariat, capable of addressing improved stakeholder engagement, inclusiveness and ownership in the AfCFTA implementation,” said Andoh Mensah, Manager, Trade and Investment Climate Division at the AfDB said.

  • AfDB to receive $1.1bn commitment in temporary callable capital from Canada

    The African Development Bank (AfDB) is to receive $1.1 billion from Canada as commitment in temporary callable capital to support the bank, an official of the bank says.

    Ms Nafissatou Diouf, Communication and External Relations Department of the bank made this known in a statement in Abuja on Friday.

    Diouf said the Canadian Minister of International Development, Women and Gender Equality, Maryam Monsef, made the announcement on
    the sidelines of the World Bank-IMF Spring meetings at Washington D.C.

    She quoted the minister as saying that the fund would be approved by the bank’s governors.

    “I am happy to say that today, Canada is demonstrating its commitment to African countries and our confidence in the AfDB by announcing that we are going to subscribe up to US$ 1.1 billion in temporary callable capital, if required.

    Read also: Ministry, AfDB partner on job creation

    “The AfDB is a key partner for Canada and we are committed to supporting the bank’s African member countries.

    “Canada and Canadians are proud of our long history of partnership and collaboration with Africa.

    “Canada is determined to ensure that no less than 50% of bilateral development assistance is dedicated to sub-Saharan Africa by 2021-2022” she said.

    Diouf also quoted the AfDB’s President, Dr Akinwumi Adesina, as saying that Canada’s commitment and support was a huge boost to the bank.

    According to Adesina, the support will allow the bank to strengthen its Triple A rating and increase lending to member countries.

    “Discussions are ongoing among all shareholders for a general capital increase.

    “Your announcement is a clear indication that Canada has strong confidence in the AfDB.

    “While extending the bank’s appreciation to Prime Minister, Justin Trudeau for Canada’s unwavering support for the bank” Adesina said.

    She disclosed that in all general capital increases of the bank, it provided temporary callable capital in 2010 while the GCI VI negotiations were ongoing.

    She said the decision enabled the bank to continue to provide its support to regional member countries in the aftermath of the international financial crisis.

    “As at 30 June 2018, Canada’s total capital subscribed amounted to $3.5 billion of which $252 million has been paid in and $3.22 billion stands as callable capital.

    ” And that makes Canada the fourth largest shareholder among the bank’s non-regional member countries,” she added. (NAN)

  • Fed Govt seeks partnership with AfDB on youth employment

    The Federal Government has stressed the need to deepen partnership with the African Development Bank (AFDB) on ongoing projects, aimed at generating youth employment.

    Permanent Secretary, Ministry of Labour and Employment, William Alo, stated this while speaking at the Review of Country Strategy Papers (2013 – 2019) and launch of the Preparations for the New Country Strategy Paper (2020 – 2024) between the AfDB and the Ministry.

    Alo called for more funding for the two projects in which the Ministry is in partnership with AfDB, and proposed the inclusion of some intervention projects in the 2020 – 2024 Strategy Paper.

    Read also: AfDB okays $20m equity fund

    He said the Ministry has been working in partnership with AfDB on two projects since last year, one of which is the Public-Private Partnership for Youth Employment and Skills Development, aimed at implementing eight priority projects, across relevant sectors, to boost massive job creation and skills development among the teeming unemployed youths in the country.

  • AfDB okays $20m equity fund

    The African Development Bank (AfDB) has approved a $20 million equity investment in Uhuru Growth Fund 1, a first-generation fund sponsored by a private equity firm, Uhuru Partners Limited. It focused on high growth middle market businesses across West Africa.

    Uhuru Partners is composed of an experienced indigenous team with strong local networks, extensive knowledge of the West Africa market and a track-record of SME investments in the region.

    The bank’s equity support will enable Uhuru Partners to make investment forays into consumer facing and financial services sectors in West African countries, including Nigeria, Ghana, Cote d’Ivoire, Senegal, Burkina Faso and Mali..

    Investments of $5 million and above will be made in companies in these sectors, helping them grow into regional champions and creating new, high quality jobs.  The proposed investment will give the Bank approximately 10 per cent of the Fund’s target capitalisation of $200 million. Equity capital is scarce in Africa, but particularly so for smaller companies with revenues below $50 million. Private equity funds such as Uhuru will help address this void. Uhuru’s compelling investment proposition is underpinned by several macroeconomic and institutional factors.