In the spirit of NEPAD, Africa Finance Corporation to bridge funding gap for private sector projects

Addis Ababa, 29 March 2007 --- A new private-sector-led regional investment bank, the Africa Finance Corporation (AFC) which begins operation in April, will bridge the massive funding gap required for the development of Africa's key economic sectors, Prof. Charles Soludo, the Governor of Central Bank of Nigeria, the promoter of the project, said today in Addis Ababa.

Speaking to an audience which included Ambassadors from many African countries, Chief Executives of Ethiopian private sector, senior representatives from the African Union Commission and Abdoulie Janneh, Executive Secretary of ECA, Prof. Soludo said AFC was initiated in the spirit of NEPAD and the realization that Africans must lead the continent's development process.

"Africa's development in the 21 st century will have to be led by the private sector and private finance," he said, adding, "If Africa is to move forward, we must build the critical pillars ourselves."

He said the AFC would have an authorized share capital of $2 billion, largely from Commercial Banks and Central Banks in Africa as well as other institutional investors. Half of that amount is expected to be secured by April 15, 2007, kick-starting the operations.

Any shortfall would be paid by the Central Bank of Nigeria, up to $490 million, in order for AFC to take off with fully paid $1 billion share capital, he said.

With head office in Nigeria, and branches in other subscribing African countries, Soludo said the corporation would finance private-led projects, especially in Infrastructure, Agriculture, Oil/Gas, Telecommunications, Financial Services, Mining and Tourism.

Commending him for his leadership in consolidating banks in Nigeria, Mr. Janneh said through AFC, African private sector-led projects would have "sustainable and predictable" capital for the development of Africa.

He said AFC would give operationality to the clamor for private sector investment in Africa.