SAN FRANCISCO, January 22, (THEWILL) – African Development Bank (AfDB) is set to mobilise funds for infrastructure development, to bridge an estimated funding gap of $130-$170 billion a year in Africa.
According to a statement by the bank, the project, which is a prelude to the AFDB President’s, Dr. Akinwumi Adesina compelling case for accelerating Africa’s industrialisation in order to create jobs, reduce poverty and promote inclusive economic growth, will formally take off at a planned Africa investment forum in Johannesburg, South Africa.
Citing data from the Bank’s 2018 African Economic Outlook launched in Abidjan, Côte d’Ivoire, during the week, Adesina said infrastructure projects were among the most profitable investments any society can make as they significantly contribute to, propel, and sustain a country’s economic growth. Infrastructure, when well managed, provides the financial resources to do everything else.
Noting that economic diversification is key to resolving many of the continent’s difficulties, he urged African governments to encourage a shift toward labour-intensive industries, especially in rural areas where 70 percent of the continent’s population resides.
“Agriculture must be at the forefront of Africa’s industrialization this is in addition to that integrated power and adequate transport infrastructure would facilitate economic integration, support agricultural value chain development and economies of scale which drive industrialisation,” he stated.
He also stated that economic diversification and industrialisation with tangible investment in human capital will enable the continent’s rapidly growing youth population to successfully transition to productive technology-based sectors.
He reiterated the plan by the Bank to organise the investment forum to mobilise funds for infrastructure development, to bridge an estimated funding gap of $130-$170 billion a year, up from previous estimates of US $100 billion per year.
New infrastructure financing gap estimates and innovative ways through which African countries can raise funds for infrastructure development are among the highlights of the 2018 edition of the report, which was launched at the Bank’s headquarters for the first time in the publication’s 15-year history.
In his remarks, Célestin Monga, the Bank’s Chief Economist and Vice-President for Economic Governance and Knowledge Management, said the African Economic Outlook has become the flagship report for the African Development Bank, providing data and reference material on Africa’s development that are of interest to researchers, investors, civil society organizations, development partners and the media.
Abebe Shimeles, Acting Director, Macroeconomic Policy, Forecasting and Research, said the Bank will publish Regional Economic Outlooks for Africa’s five sub-regions.
The self-contained, independent reports, to be released at the Bank’s Annual Meetings in May 2018, will focus on priority areas of concern for each sub-region and provide analysis of the economic and social landscape, among other key issues.
