African infrastructure projects require an estimated $100 billion in investments each year, but only half of that amount is currently made available — and neither public nor private resources alone can bridge the funding gap.
That’s why the African Development Bank wants to become a “catalyzing agent” for public-private partnerships in the infrastructure sector, private sector development adviser Aminate Niane told Devex Global Membership Associate Kavita Kalsi at the European Development Days in Brussels
“There is a need to reinforce the capacities of states, in order to integrate more and more private financing, but also to reassure the private sector by proposing guarantees to reduce perceived risks concerning long-term investments in developing countries,” she said.
Niane explained that AfDB currently has a $25 billion financing portfolio in Africa’s infrastructure sector, further generating $200 billion for projects in a variety of sectors, including transport and renewable energies. Indeed, she noted that one-third of the lender’s current portfolio is dedicated to supporting the private sector.
Watch the above video (in French) for more insights gleaned from the expert on the bank’s efforts to support governments to improve legislation to better attract the private sector and explains the role of risk attenuation systems — partial guarantees of financial products — to facilitate the development of PPPs on the continent.
Devex was at the European Development Days 2013. Check out our coverage of Europe’s leading global development event of the year.
