Nigerian and other African countries’ economies are about to receive a boost, as the Board of Directors of the African Development Bank (AfDB) has approved an equity investment of $40 million for African economies.
In a statement made available to the public, the AfDB revealed that the $40 million investment would be ploughed in the African Infrastructure Investment Fund, with a focus on acquiring positions of significant influence in roads, airports, rail links, bridges, ports, logistics, power generation, utility distribution, as well as telecommunications assets.
The $40 million investment represents the bank’s third equity investment, following a 1996 investment in South Africa Infrastructure Fund and a 2010 investment in AIIF2.
“Commercial and institutional investors are likely to view the bank’s investment as a positive demonstration effect. The bank’s investment will also ensure the highest environmental and social standards are applied to AIIF3.
“In terms of development outcomes, AIIF3 will create a quantifiable and measurable social and environmental impact by supporting energy and transport infrastructure access across sub-Saharan Africa. The fund will support the creation of over 1,500 jobs at the project level and enhance capacity building and skill transfer.”
Nairametrics had reported that AfDB approved a $15 million for equity investment in Verod Capital Growth Fund III, a private equity fund for investments in high growth middle market companies.
AfDB made known that the approved fund will be to project the equity investment, not only in Nigeria but Ghana, Liberia, Sierra Leone and the Gambia.
The African Development Bank Group or Banque Africaine de Développement is a multilateral development finance institution. The AfDB comprises three entities: The African Development Bank, the African Development Fund, and the Nigeria Trust Fund.
The institution’s mission is to fight poverty and improve living conditions on the continent through promoting the investment of public and private capital in projects and programs that are likely to contribute to the economic and social development of the region.