Published On: Tue, Feb 6th, 2018

AfDP Okays $10m To Boost Critical Sectors In Africa

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The Board of African Development Bank (AfDB) has approved a 10-million dollar loan for African Local Currency Bond Fund (ALCBF) to boost its portfolio in Africa.

A statement in Abuja on Tuesday, signed by Olivia Ndong-Obiang, the Principal Communications Officer in AfDB said the fund will serve as catalyst for investments in critical sectors such as renewable energy, housing, health, education, the financial sector and agriculture in line with the bank’s High five priorities.

The statement said that the ALCBF was also approved by the bank to promote the development of domestic capital markets in Africa and had a tenor of seven years with a two-year grace period.

The ALCBF loan, according to statement, would improve access for non-sovereign issuers to long-term funding in local currency, reduce currency and maturity mismatches and increase local financial intermediation.

The statement reads in part: “The fund will catalyse investments in critical sectors such as renewable energy, housing, health, education, the financial sector and agriculture in line with the bank’s High five priorities.

“This will ultimately help grow private sector financing through capital markets.’’

“The fund has invested in Botswana, Ghana, Kenya, Zambia, Lesotho, Senegal, Côte d’Ivoire, Nigeria, Uganda, Malawi, Gabon and Togo.

As of December 31, 2017, the statement said the fund had made 27 investments across 19 companies and in 10 currencies.

The bank’s High five priorities are Light up and Power Africa, Feed Africa, Industrialise Africa and Improve the quality of life for the people of Africa.

 


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