The two entities have signed a memorandum of understanding to jointly mobilise $300 million in financing to develop and fund infrastructural projects on the continent.

The US Export-Import Bank (US EXIM Bank) and Africa50, a pan-African infrastructure investment platform backed by the AfDB, have signed a Memorandum of Understanding (MoU) to jointly mobilize US$300 million in financing to develop and finance bankable infrastructural projects in Africa. The agreement will enable the two institutions to strengthen their collaboration and connect US companies with medium to large-scale projects across the continent.

The main goal of the partnership is to fill some of the infrastructure investment gap in Africa. The AfDB estimates that of the $130-170 billion annual financing needs on the continent, there is a gap of $68-108 billion to be filled. The agreement will target six main sectors, namely climate and energy security, technology and digital connectivity, social development, renewable energy, transport and distribution, environmental technologies, logistics and ICT.

"There is a serious infrastructure investment gap across the continent, and public and private capital must pull resources together to close it. Africa50 looks forward to working with US EXIM Bank in identifying and accelerating critical infrastructural projects for the benefit of Americans and Africans," said Alain Ebobissé, CEO of Africa50.

In addition to Africa50, US EXIM Bank has initialed two other memoranda of understanding (MOUs) of 500 million dollars each with two African institutions, namely Afreximbank and Africa Finance Corporation (AFC). These agreements were signed on the sidelines of the US-Africa Leaders' Summit held from 13 to 15 December.

Source : ecomatin.net/