African leaders have launched a major new financing initiative to bridge the continent’s infrastructure gap. The African Union Development Agency signed a declaration of intent to create a facility aiming to mobilize up to $1.5 billion, a move designed to strengthen Africa’s financial sovereignty.
The agreement with the Alliance of African Multilateral Financial Institutions, known as the Africa Club, was finalized at the III Financing Summit for Africa’s Infrastructure Development in Luanda. The proposed fund will serve as a crucial bridge, channeling resources into priority projects like energy, transport, and digital communications until the permanent African Union Development Fund is established.
In a parallel strategic move, AUDA NEPAD also signed a memorandum of understanding with the Africa Social Security Association. This partnership seeks to leverage the vast capital within African pension funds for infrastructure investment. The deal includes a feasibility study for a new Infrastructure Development Fund for Africa, directly tapping into domestic capital markets.
A third agreement with renewable energy consortium CATA Energy aims to accelerate the continent’s green transition. The partnership will launch the Africa Green Transition PPP Fund, focusing on deploying solar and wind power in mining corridors and industrial zones. These collaborations represent a concerted effort to turn the ambitions of the AU’s Agenda 2063 into tangible, financed projects.
Source: newsghana.com.gh
