Nigeria and some African countries under the platform of Africa50, the new and innovative infrastructure investment platform promoted by the African Development Bank (ADB) held its Constitutive General Assembly on the 29th of July 2015 in Casablanca, Morocco and raised $830 million for infrastructure projects in Africa.
Twenty African countries and the African Development Bank subscribed for an initial aggregate amount of $830 million in share capital.
These founding African countries are Nigeria, Benin, Cameroon, Congo, Djibouti, Egypt, Gabon, Ghana, Ivory Coast, Madagascar, Malawi, Mali, Mauritania, Morocco, Niger, Senegal, Sierra Leone, Sudan, The Gambia and Togo.
While this first closing was available only to African countries, it is anticipated that the second and subsequent closings will be available not only to African countries that are yet to invest in Africa50, but also non-sovereign investors both in Africa and outside Africa.
The second closing is expected before the end of 2015.
Speaking at this historic event, Donald Kaberuka, President of African Development Bank and current chairman of the Boards of Directors of Africa50, said “the large presence of African states and their financial commitments are a testimony to a shared vision to find new ways to accelerate the provision of infrastructure. Africa50 will be a step change for infrastructure financing and development in Africa”.
Mohamed Boussaid, the Minister of Finance for the Kingdom of Morocco stated that Africa50 is an idea whose time has come and that the Constitutive General Assembly is an important first step towards making it a reality.
Africa50’s reason for existence is to mobilise longterm savings within and outside Africa for the financing of commercially viable infrastructure projects
Through an integrated approach, Africa50 will invest in African infrastructure projects at scale along the entire project finance value chain, leveraging its innovative Project Finance and Project Development windows.
The strong expression of commitment by the African countries is a necessary first step towards attracting institutional investors, including sovereign wealth funds, pension funds, insurance companies and other sources of long-term finance around the world.
Africa50’s medium term capitalisation is projected to reach $3 billion.
During the Constitutive General Meeting, Africa50’s founding members signed the articles of incorporation, which enshrine the highest standards of corporate governance.
Africa50 is headquartered in Casablanca, Morocco.
Other decisions taken at the meeting included the appointments of the members of the Boards of Directors of the Project Finance and Project Development vehicles and also the appointment of KPMG as external auditors.
FRANK UZUEGBUNAM with wire reports
Source : businessdayonline.com