Post Views: 336 African nations can save as much as $1bn borrowing 20-year money from the African Development Bank (AfDB), instead of the recurrent ru...
African nations can save as much as $1bn borrowing 20-year money from the African Development Bank (AfDB), instead of the recurrent rush for the Eurobond markets.
Speaking during the bank’s financial presentation on Thursday, at the ongoing 2019 Annual Meetings in Malabo, Equatorial Guinea, Group the bank’s Group Treasurer, Hassatou Diop N’sele, enjoined African nations to harness the full potential of their capital markets.
By so doing, he assured “the amount of infrastructure financing covered by the private sector could double…”
On debt sustainability, the bank stressed that although Africa’s debt has increased in recent years, it has not risen “to unsustainable levels.”
During the presentation attended by delegates, Governors, Executive Directors, and Bank staff, N’Sele noted that the Bank could chart a new path on account of its ability to raise funds on the capital markets.
That notwithstanding, however, Simon Mizrahi, Director of Service Delivery, Performance Management and Results at the bank called for caution, urging governments to rather continue generating financing that would “spur growth without increasing debt.”
Sharing insights on Africa’s way forward, Mizrahi underscored the need to harness the continent’s incredible potential in renewable energy.
The bank expressed commitment to growing its operating revenues and allocable income generated since 2010 reaching $2.5bn, just as in 2018, it earned $214m in allocable income, 48% of which has been reinvested in the institution to reinforce reserves and its business growth capacity.
He stressed that Africa is the most vulnerable continent and suffers the most from climate change but “with the right vision, investments and political commitments, Africa can lead a global energy revolution and leapfrog to renewable technologies. This is why the Bank is putting its money where its mouth is and investing more than any other development Bank in helping the continent transition towards more resilient and sustainable economies.”