The African Development Bank (AfDB) says it devoted at least $1 billion to finance power and infrastructure projects in Africa this year alone.
In October, the AfDB availed $428 million in loans and grants to finance projects in energy, infrastructure, transport and water and sanitation in eight African counties namely Zimbabwe, Guinea Bissau, Guinea, Senegal, Gambia and Côte d’Ivoire, Ghana and Tanzania.
The news was disclosed, on Friday December 18, 2015, at the Bank’s Headquarters in Abidjan, at a wrap up meeting, following the recent approval by the Board of Directors, of a senior loan worth $300 million to support the construction of a 912 Km of railway and associated port infrastructure of Nacala e-Velha running through landlocked Malawi.
“The Bank is proud to partner with Vale and Mitsui, along with the group of co-financiers, including International Finance Corporation (IFC), Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance, to enable the financing of this USD 4.5 billion project finance investment, one of the largest single foreign direct investments into Africa in recent years,” the Bank’s Private Sector Department Director, Kodeidja Diallo, highlighted.
In her viewpoint, this investment constitutes the largest one for 2015, after Eskom South Africa, and stems from the fruitful contributions and valuable collaboration among OPSD staff and the entire Bank’s NSO Ecosystem.
“This is a great achievement by OPSD staffing reduced by one third and I wish to commend the various experts for a well done job.
“We are very pleased to announce this achievement by the Bank Group, with other key sponsors,” she further underscored.
The Nacala Rail and Port Project will enable the efficient and environmentally-friendly transport of mineral resources, general freight and passengers through two of Africa’s fastest-growing economies. In doing so, the Project stands to facilitate trade and development across the southern Africa region. Railway extension lines into neighboring countries are currently under feasibility discussion.
The Project will bring about global competitiveness to Mozambique’s mineral exports, including the country’s important coal reserves. While the rail infrastructure is anchored on the viability brought about by mineral exports in Mozambique, the Project will also build competitiveness around the region’s agricultural and manufacturing trade, thus supporting Africa’s industrialization agenda.
The Bank’s support of the Nacala Corridor is long-standing, having financed regional road infrastructure from Lusaka in Zambia to Nacala in Mozambique, also integrating Malawi. The Project is thus complementary to previous Bank’s investments.