Chronicle Editor
Oliver Kazunga, Senior Business Reporter
THE African Development Bank (AfDB) has availed US$3,79 billion to support the private sector in Africa to mitigate the impact of the Covid-19 pandemic on businesses.
Africa like the rest of the world has not been spared from the detrimental effects of Covid-19, which was first detected in China last December.
AfDB said a total of 15 deals in the Africa Investment Forum’s portfolio, valued at US$3,79 billion has been earmarked to address Covid-19 impact.
In a statement, the regional financier said increased and decisive investment will be the channel for Africa’s economic recovery post Covid-19.
“Africa will come out of this pandemic, tough as it is, and will build better and stronger economies. As partners of the Africa Investment Forum, the premier investment platform for Africa, our gaze must be clear; help Africa reboot its economy,” AfDB president Dr Akinwumi Adesina was quoted as saying during a two-day virtual meeting for Africa Investment Forum founding, institutional and knowledge partners held last week.
The virtual marketplace, which mirrored typical sessions of its annual Market-Days, AfDB said the Africa Investment Forum convened over 190 participants including current and prospective partners, investors and project sponsors.
It said the forum showcased its unified Covid-19-response and provided an update on its activities, as well as opportunities for new partners and investors to engage with the platform.
“During the meeting, the Africa Investment Forum revealed 15 projects identified across five sectors for priority funding consideration under its Unified Covid-19 Response.
“The sectors include agriculture and agro-processing, energy, health, information communication technology, and telecommunications, industrial and trade.
“Collectively, these 15 deals, which are from the Forum’s current portfolio, amount to US$3,79 billion and will help increase the continent’s self-sufficiency and resilience against future shocks,” said AfDB.
It said four project sponsors were invited to pitch their deals to over 100 investors present at the meeting.
These included a dairy processing, vaccine manufacturing plant and cotton manufacturing projects.
Following the meeting, the Africa Investment Forum’s deal tracker mechanism was immediately deployed to capture investment interest and ensure effective investor-project matchmaking.
The meeting took place as the Africa Investment Forum continues to build on the successes of its first two years in bringing to market deals with transformative potential for Africa’s development.
Africa Investment Forum head and senior director Ms Chinelo Anohu was quoted saying:
“The Africa Investment Forum is not a talk shop. What we are trying to do is to focus our partner’s efforts on the platform’s bankable deals from the 2018 and 2019 portfolio, as well as some new ones in 2020.”
She said they were not just concentrating on health but other sectors that would help jumpstart recovery across the continent.
Beyond boardroom sessions, the Africa Investment Forum continues to support project sponsors through its deal tracker mechanism, which monitors the conversion of investment interests to financing commitments and facilitates the progress of deals towards financial close.
So far, the forum has facilitated the closure of eight deals valued at US$2,18 billion from the 2018 portfolio.
The Africa Investment Forum, championed by the African Development Bank and its founding and institutional partners, is working to accelerate the closure of the continent’s investment gaps.
The founding partners are the African Development Bank, Africa 50, Africa Finance Corporation, African Export-Import Bank, Development Bank of Southern Africa, Trade and Development Bank, European Investment Bank, and Islamic Development Bank.
Institutional partners include development finance institutions, multilateral development banks, commercial banks and institutional investors.
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