AfDB: The African Development Bank and Made in Africa Foundation officially launched the fundraising for Africa50’s Project Development Vehicle on Thursday, September 26 at the NASDAQ Stock Exchange in New York City.
The African Development Bank (AfDB) and Made in Africa Foundation (MIAF) have partnered to co-market initiatives that will catalyze funding for Africa’s largest infrastructure delivery vehicle created to-date, Africa50.
With the critical objective of reducing the timing required to develop infrastructure projects in Africa, Africa50 is the result of experience and innovation. Over the past five years, AfDB has delivered over USD 5.4 billion in critical infrastructure investment in Africa through private sector and public-private partnership financing.
For its part, MIAF was born when internationally renowned Ghanaian-born designer Ozwald Boateng and leading Nigerian entrepreneur Kola Aluko of Atlantic Energy realized that a few hundred million dollars of investment in project development could change the course of economic development for the whole of Africa. The alliance between MIAF and AfDB aims to raise up to USD 500 million for Africa50’s project development arm by the first half of 2014.
The historic alliance between MIAF and AfDB was formally launched at the NASDAQ Stock Exchange early Thursday. The effort was supported live by Boateng; Aluko; Sam Kutesa, Uganda’s current Minister of Foreign Affairs and the next president of the United Nations General Assembly; Tas Anvaripour, Team Leader for Africa50; and Anne Kabagambe, Chief of Staff and Director of Cabinet at the President’s office of the AfDB.
The NASDAQ event was followed by a luncheon hosted by Arthur Sulzberger, Jr., publisher of The New York Times, where the African Development Bank Group President, Donald Kaberuka, delivered a video message on Africa50.
Discussion on Africa’s newest infrastructure delivery vehicle involved participation by African business leaders, American investors, Patrick Zhong of the Fosun Group in China and former UK Foreign Minister and International Rescue Committee CEO David Miliband.
Africa50 will comprise two main funding arms: Project Development Vehicle and Project Financing Vehicle. At a recent meeting of African Central Banks in Mauritius, AfDB President Donald Kaberuka explained that “to increase the rate of infrastructure delivery in Africa we need to speed up project preparation and project development. The critical objective is to shorten the time between the idea and financial close from a current average of seven years to less than three years, while also increasing the volume of transformational infrastructure projects in the continent.”
Tas Anvaripour, Team Leader of Africa50, notes, “African infrastructure projects are increasingly capturing the attention of investors worldwide. However, the number of bankable infrastructure projects brought to market is still insufficient, even though they offer an excellent way to diversify investment portfolios and steady, long-term, and above average returns.” Having closed over 40 large infrastructure private sector projects in the past five years, AfDB strongly believes in the infrastructure opportunities latent in Africa.