African Development Bank to create infrastructure fund of $50 billion

(Reuters) – The African Development Bank said on Thursday the fund it intends to create to finance infrastructure investment on the continent could be as big as US$50 billion.

“The Bank has explained its plan to build the continent’s infrastructures and we estimate the potential to US$50 billion,” chief economist and vice-president of the bank Mthuli Ncube told reporters, on the margins of the bank’s annual assembly in Marrakesh, Morroco this week.

“The respective central bank governors have been keen and are considering how to accelerate the process, but there is no calendar for the project.”

The Bank estimates the continent needs US$100 billion a year spent on infrastructure this decade.

It hopes to draw in investment to its fund from sovereign wealth funds, pension funds and the African diaspora.

Africa’s economy is projected to grow by approximately 5.0 percent in 2013 and 5.5 percent in 2014, the African Development Bank said in a report released on Monday.