Investment Fund For Africa Established

Accra, July 4, 2007 – An investment fund for the establishment of a Pan African Infrastructure Development Fund (PAIDF) is set for action.. The project will be headquartered in South Africa and extend branches in other African countries.

This was announced by African Finance Ministers who attended the just concluded the African Union Summit in Ghana. The project will attract both private and public funds to finance the construction of infrastructure in African countries.

South African Finance Minister, Nkosawana Dlamini-Zuma said the “fund is financed by Africans for the good of Africans.”

Nana Akufo Addo, Ghana’s Foreign Minister explained the logic behind the establishment of the fund. He said it aims to refrain African countries from relying on handouts or charities from the so-called rich nations.

The fund’s Executive Director, Tsehepo Mahloele, said public and private investors, including banks and African pension funds, have pumped at least 500 million euro into the project. Tsehepo was confident that this amount would double within a year.

The fund has got five priority areas: construct an airport in West Africa, a toll road in Nigeria, a gas supply network in Namibia, investments in the hydroelectric dam in Inga, Democratic Republic of Congo and extend satellite coverage for all sub-Saharan Africa.

It is expected at least two of the fund’s priorities will be a reality between the next 12 and 18 months, the fund’s Director said.

Investment firms from South Africa and Ghana public fund have made history by becoming the fist to take part in the new project – the first of its kind in Africa.

Countries such as Namibia, Kenya, Nigeria, Botswana and Tanzania are said to be at the brink of changing their norms to allow national pension funds to invest in the fund.

Besides, firms outside Africa have also expressed interest in taking pat in the fund, PAIDF Director said.

Source: Afrol News