NIGERIA TO GAIN FROM AFDB INFRASTRUCTURE REFUNDING

$56 billion has been approved by  The Board of African Development Bank, AfDB,
to scale up industrialisation in Nigeria and other African countries
on the content over the next ten years under its
Industrialisation Strategy for Africa 2016-2025.
The bank in a statement stated: “The Strategy,
approved by the Board, represents a roadmap
for implementing priority programs to scale up
the industrial transformation of Africa.
“It addresses key issues such as: (i) Why we
need to industrialise Africa; (ii) What it will
take to industrialise Africa; and (iii) How AfDB
will help to industrialise Africa.
“In designing the strategy, the Bank
underscored the vital roles that
industrialisation plays in development as it
leverages all the value chains of economic
activity ranging from raw materials to finished
products. It catalyzes productivity by
introducing new equipment and new
techniques, increases the capabilities of the
workforce, and diffuses these improvements
into the wider economy. It generates formal
employment, which in turn creates social
stability. It improves the balance of trade by
creating goods for export and replacing
imports.
“The strategy aims to (i) Develop industrial
sector and policy framework, (ii) Enhance trade
and integrate Africa into the regional and
international value chains and (iii) Boost
competitiveness and value creation by
expanding supply of business services to
maximise impact on the performance of
industries and vice versa.
“To achieve these goals, the strategy would rely
on five enablers which the Bank will
mainstream into flagship programs. These are:
(i) Supportive policy, legislation and
institutions; (ii) Conducive economic
environment and infrastructure; (iii) Access to
capital; (IV) Access to markets; and (v)
Competitive talents, capabilities, and
entrepreneurship.
“In successful industrializing countries, these
enablers have typically been integrated into a
comprehensive industrial policy that has
enabled businesses, both large and small, to
develop along the value chains of selected,
high potential industrial sectors,” said the
statement.
It added: “The Bank will support countries by
championing six flagship programs: (i) Foster
successful industrial policies; (ii) Catalyze
funding in infrastructure and industry projects;
(iii) Grow liquid and effective capital markets;
(IV) Promote and drive enterprise development;
(v) Promote strategic partnerships; and (VI)
Develop efficient industry clusters.
“It would also increase its level of funding and
crowding in third party resources to the tune of
USD 35 to 56 billion over the next decade. The
Bank will also leverage additional resources
through partnership with other DFIs, relevant
UN agencies, AUC, RECs, and special purpose
vehicles providing seed funds. In addition,
substantial amounts will be mobilized through
syndication and co-financing in support of
phased programs that would be specific to
local contexts and in line with the countries’
development goals.
“Industrialize Africa” will build on synergies
across the other H5’s – Light up and power
Africa, Feed Africa, Integrate Africa, and
Improve the quality of life for the people of
Africa – by virtue of its crosscutting agenda.”