The African Development Bank will raise money from private companies based in Africa such as pension funds and insurance companies for its new infrastructure fund Africa50, the bank’s outgoing president told Bloomberg in an interview.
Donald Kaberuka said the bank already raised $1 billion from regional governments to fund the construction of roads, ports and energy projects across Africa. The next step will be to raise funds from the private sector. The fund was launched last year and targets $3 billion in initial commitments and $10 billion longer-term. It will become operational next month after a meeting of donors in Morocco.
The private sector is already a major contributor to infrastructure projects in Africa. As of 2013, investment in infrastructure from the private sector and public institutions totaled $52.9 billion, a 54% increase from 2011, based on the latest figures from the Infrastructure Consortium for Africa.
To see the whole interview visit Bloomberg here.