The President of the African Development Bank (AfDB), Dr. Akinwumi Adesina has stated that the default rate on infrastructure financing for African countries is one of the lowest in the world when compared to Europe and Asia.
He disclosed this while delivering an address to participants at the African Investment Forum (AIF) held in Marrakech, Morocco themed “Unlocking Africa’s Value Chains,”
The AfDB Chief also noted that African economies present some of the most promising investment prospects globally.
In his words,
- “As investors, put your monies where the future is. The future is in Africa and investors should see Africa not from what they hear, but from what the facts say.”
- “Moody’s Analytics analyzed default rates on infrastructure financing globally over the past 14 years. The result is, that Africa’s default rate is the lowest in the world at 2.1% compared to Eastern Europe well over 10%, and Asia well over 8%.
- Africa is not as risky as you perceive. Private equity and venture capital in Africa soared year over year to 7.70 billion dollars.’’
Investment in the Lagos-Abidjan highway corridor
He also said that at the AIF event last year, the Lagos-Abidjan Highway secured a $15.5 billion investment for its construction.
Adesina emphasized that the development of this corridor has the potential to profoundly impact the entire West African region by accelerating regional integration, fostering sustainable economic growth, and promoting trade.
He said,
- “At the 2022 African Investment Forum market desk, the Abidjan-Lagos was able to secure $15.5 billion of investment interest. This corridor will transform the entire West African region and speed up regional integration and trade.”
In 2022, investment interests were secured for $3.6 billion for the East Africa Railway Corridor, linking Tanzania, Democratic Republic of Congo, and Burundi.”
- “We are delighted that the AIF has so far closed on deals’ investment gaps worth $11 billion.”
- “This ranged from liquified natural gas, renewable energy, agribusiness, industrial manufacturing, creative industry, housing, and transport. It is time again for investment action, it is time to do it again,”