African Union to set up infrastructure fund

22 February 2021 | Economics

DUNCAN MIRIRI

The African Union is setting up a fund to finance the construction of much-needed roads, railways and power plants on the continent, its infrastructure head said, turning to new sources of cash due to donor fatigue and higher debt levels.

The continent has an estimated annual infrastructure financing deficit of US$60 billion to US$90 billion, the AU says, making it hard for the body to advance its goal of integrating the disparate individual markets into a single, free trade area.

"Africa is financially starved as far as the need for infrastructure development is concerned," Raila Odinga, who is the AU's high representative for infrastructure, told Reuters.

The 55-nation AU is now turning to sovereign wealth funds, insurance and retirement funds in countries like South Africa, Angola, Nigeria Morocco, Egypt and Kenya, to raise the cash.

The funds will be invited to invest about 5% of their holdings, Odinga said, "which is actually going to be more lucrative for those institutions, rather than having funds lie idle".

Funds

Talks with the funds are going on and the AU's experts are setting up the legal and financial structure for the infrastructure fund, which will be administered by the newly formed African Union Development Agency, Odinga said.

The move bucks the past trend of dependence on wealthy donor nations and borrowing from financial markets.

China, which has been one of the biggest funders of infrastructure projects on the continent over the past decade, has cut back on lending due to high debt levels among individual nations like Kenya.

The drive to find new ways of funding the construction of roads and railways and other utilities comes as Africa seeks to bring together 1.3 billion people in a US$3.4 trillion economic bloc known as the African Continental Free Trade Area (AfCFTA). - Nampa/Reuters

Similar News

 

Angola seeks to boost diamond output

12 hours ago | Economics

SERGIO GONCALVESAngola plans to boost diamond mining and open a new large mine in the east, aiming to produce 5.7 million carats there in 2023,...

Fuel prices to create cost pressure

1 day - 03 March 2021 | Economics

PHILLEPUS UUSIKU Despite the big increase in fuel prices for the past two months, the impact on inflation should be relatively small.According to Cirrus Capital...

CPBN appoints new board members

1 day - 03 March 2021 | Economics

Seven new board members of the Central Procurement Board of Namibia (CPBN) were sworn by the High Court here on Monday, to serve for a...

Team Namibia worried about loopholes in NEEEB

1 day - 03 March 2021 | Economics

PHILLEPUS UUSIKUTeam Namibia did not spare its voice and joined other industry and private sector players in questioning the latest National Equitable Economic Empowerment Bill...

Okonjo-Iweala’s job ‘no bed of roses’

2 days ago - 02 March 2021 | Economics

The appointment of Nigeria’s Ngozi Okonjo-Iweala as the first African and first female chief of the World Trade Organisation (WTO) is good news for the...

Virtual currency a lifeline in Kenyan slums

2 days ago - 02 March 2021 | Economics

Kagondu Njagi - Sitting on a low bench at her shop in a Nairobi slum, Grace Wangari sifted through a handful of grains that a...

SA proposes to change pension fund rules

2 days ago - 02 March 2021 | Economics

South Africa's National Treasury is proposing changing rules governing pension funds to encourage investment in infrastructure projects.Africa's most industrialised nation, the hardest-hit by the coronavirus...

Fuel jumps N$1.30 /l in two months

3 days ago - 01 March 2021 | Economics

Jo-Maré Duddy – Consumers have to brace themselves for the second fuel price increase in two months with both the price of petrol and diesel...

Bit brighter green shoots forecast

3 days ago - 01 March 2021 | Economics

Jo-Maré Duddy – Bountiful rains over large parts of Namibia, as well as better prospects for diamond mining and transport convinced the central bank to...

Transparency push for IMF’s currency reserve

3 days ago - 01 March 2021 | Economics

Andrea Shalal - The International Monetary Fund on Friday said it would propose ways to improve the transparency and accountability of how its Special Drawing...

Latest News

Otjikoto sitting on a gold...

12 hours ago | Business

Jo-Maré Duddy – B2Gold’s Otjikoto mine is expected to reach record-level production this year and through to 2024, the Canada-based low-cost international senior gold producer...

Mining survey: Chamber hits back

12 hours ago | Business

PHILLEPUS UUSIKU Too few responses have skewed Namibia's performance on the 2020 Fraser Institute Survey of Mining Companies, tarnishing its image as an attractive investment...

‘Not up to you’

12 hours ago | Education

TUYEIMO HAIDULA ONGWEDIVA Higher education minister Itah Kandjii-Murangi says institutions of higher learning...

Sioka in hot water over...

12 hours ago | Ministries

JANA-MARI SMITH WINDHOEKThe clock is ticking for child welfare minister Doreen Sioka who has less than a month to present a...

Corruption - A social disease...

12 hours ago | Columns

Johan CoetzeeGiven ongoing media articles about governance, manifested in contraction of investment and increasing unemployment, it is appropriate to reflect on several trends covering several...

EDITORIAL

12 hours ago | Opinion

The phony attempts by mainly men in the National Unity Democratic Organisation (Nudo) to undermine its president Esther Muinjangue will only further dissuade women from...

Drought policy in review to...

12 hours ago | Agriculture

ELLANIE SMIT WINDHOEKThe agriculture ministry is in the process of reviewing the country’s drought...

Nam mining licence loophole closed

12 hours ago | Business

From the beginning of April this year, Namibians who hold mineral licences will no longer be allowed to transfer it to foreign companies or persons...

Aroab SME owners hope for...

12 hours ago | Business

Suzith Tjitaura – Small business owners at Aroab say they hope for better days as they have hardly generated any profits since the start of...

Load More