Africa needs at least USD93 billion in the next decade to address its infrastructure deficit, particularly in the road and power sectors, according to a key official of the African Development Bank.
“If any economic activity is going to take place, clearly our infrastructure deficit must be closed,” said Nkosana Moyo, AfDB chief operating officer. “We need a lot of money, and the bank can only supply a part of that.”
AfDB earmarks more than half of its funding for infrastructure projects, especially in energy and transportation. The bank is mulling over supporting wind-power projects in Kenya and Cape Verde, and the Inga 3 hydropower plant on the Congo river, Moyo said. The regional lender approved investments for power projects in South Africa and Botswana last year.
The bank’s shareholders recently endorsed the tripling of AfDB’s capital to nearly USD100 billion. According to Moyo, AfDB lending this year will perhaps have little change since shareholders have yet to start injecting capital.
“We are holding our pipeline a bit flat,” Moyo was quoted by Bloomberg as saying. “It’s a timing issue. The capital increase will only kick in sometime next year, so we are bridging the period between now and when the capital comes in by suppressing a little bit.”