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AfDB directors approve AIF to deepen FDI for Africa

To drive the needed campaign for investors from developed world to see and understand the potentials of the continent, the board of directors at the African Development Bank (AfDB) has passed the institution’s proposal to launch an Africa Investment Forum (AIF).

The AIF will not only be a meeting place for investors interested in Africa, but also a destination of showcasing bankable projects, attracting financing, and providing platforms for investing across multiple countries.

The Bank also stated the seminar will also serve as a unique forum for international business and social impact investors looking to transact and deploy funds in Africa.

The financial institution further mentioned that the AIF will act as an avenue for connecting investors with both public and private sector projects throughout the continent.

AfDB’s senior vice president, Dr Frannie Leautier, said in a statement that “The AIF will coordinate with other Africa investment fora and work to strengthen collaborative efforts to crowd-in necessary investment, and attract social impact financing to Africa.

“It will support AfDB regional member countries and potential investors through the provision of rigorous, authoritative and robust, business intelligence and analytical work on African’s competitiveness.”

The multilateral finance organisation said the creation of the AIF was approved by the Bank’s board of directors on 7 October 2016, along with the creation of a Water, Human and Social Development Department; an Infrastructure, Cities, and Urban Development Department; as well as a Syndication, Financial and Technical Services Department.

The Bank noted that these are improvements to the institution’s new Development and Business Delivery Model (DBDM), which was approved by the AfDB board of directors on 22 April 2016.

The DBDM aims to streamline business processes to improve efficiency, enhance financial performance, increase development impact and move the Bank’s operations much closer to its clients so as to improve delivery.

Chairman of the board, and President, Dr. Akinwumi Adesina, said “I commend the immense support and encouragement by board members. The new structures are well thought out and will enable the Bank to achieve its transformation objectives.

“The African Investment Forum is a transformational instrument that will make it possible to crowd in investments to garner the huge financing required in critical areas, with the private sector playing a crucial role,” Adesina added.

It would be recalled that while in Nigeria last week, Dr. Adesina disclosed that AfDB will invest well over $4.1 bn in Nigeria to provide infrastructure, drive SMEs and technical assistance for the economy to exit recession.