Nigeria’s SWF to Develop Infrastructure Platform with AFC
Developing infrastructure in sub-Saharan Africa is a capital intensive, intricate undertaking requiring investors with a technical capacity. Large pools of assets that are long-term oriented like sovereign funds and pensions can play a role in financing infrastructure. The Africa Finance Corporation (AFC), a multilateral institution, and the Nigeria Sovereign Investment Authority (NSIA) signed a Memorandum of Understanding (MoU) that details strategic collaboration on building an infrastructure investment platform. To jumpstart critical infrastructure investment in Nigeria, both entities plan to support the financing, development and operational aspects of future infrastructure projects.
Currently, infrastructure investment activity in sub-Saharan Africa has been heavily allocated toward natural resources and industrial activities. Vital infrastructure deficits affecting human prosperity and economic growth are found in the transportation and power sectors.
Created in May 2007, the Africa Finance Corporation with a capital base of US$ 1 billion aims to stimulate private sector investment in infrastructure by filling a critical void. Partnership with organizations like the AFC assists the Nigerian Infrastructure Fund of fulfilling its mandate to increase investment in Nigerian infrastructure.
Africa Finance Corporation Shareholders
African Financial Institutions 47.6%
Central Bank of Nigeria 42.5%
Industrial and Corporate Shareholders 9.8%
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