Private sector investment in Africa’s infrastructure in 2020 has increased by a whopping $19 billion, representing a 23% surge, the highest since 2016.
This was disclosed by African Development Bank (AfDB) Vice President for the Private Sector, Infrastructure and Industrialisation, Solomon Quaynor, at a webinar organised by the bank and the Japan International Cooperation Agency (JICA).
Quaynor stated that the greater private sector investment came as most African governments contended with the COVID-19 pandemic, limited fiscal space and high debt-to-Gross Domestic Product ratios.
He said, “Private sector investment in Africa’s infrastructure rose to 19 billion dollars in 2020, representing 23 per cent, the highest since 2016.
“This counter-cyclical role played by the private sector shows the importance of its growing role in infrastructure financing in Africa,” he added.
The Chief Executive Officer of the AfDB Association, Vivek Mittal, said that four African countries accounted for the majority of private sector investment interest over the past two years.
The countries are Kenya, South Africa, Ghana and Nigeria.
He said that digital activities in transportation and electricity received the highest interest.
He also added that “projects take too long, eight to 10 years in Africa.” According to him, the slow development of local talent is another drawback.
The Federal Government of Nigeria has announced it secured a $134 million loan from the African Development Bank to boost wheat production.
Earlier this year that the African Development Bank (AfDB) said the heat-tolerant wheat production technology being supported by the Bank in Nigeria, will help boost wheat production.
The AfDB stated that the goal would be to reduce the importation of the product by 40% by 2023, as the support would come under the Bank’s $1.5 billion Africa Emergency Food Production Facility.
The African Development Bank (AfDB) Group and the Securities and Exchange Commission (SEC) have also signed a $460,000 agreement to support the acquisition, installation and deployment of an automated surveillance system to protect the capital market.
