AFRICA SET $3 B
Africa's largest development lender plans to launch a $3bn infrastructure fund this month, aiming to raise money from regional and non-African pension funds, insurance groups, sovereign wealth funds and institutional investors.
The fund, to be known as Africa50, will help the continent in "delivering vital infrastructure through a new global partnership platform", according to the proposal by the African Development Bank.
Africa needs about $95bn a year to close an infrastructure gap in electricity, roads, railway and port. Current investment is running at about $45bn – leaving a large shortfall.
The AfDB, which will invest $500m, aims to approve the fund this month during its annual meeting in Rwanda. It hopes to raise at least $3bn in funds, "to be scaled up to at least $10bn".
Regional sovereign wealth funds, insurance groups and commercial banks could put invest in Africa50. The AfDB will also tap non-African investors.
Sovereign wealth funds and global institutional investors are starting to pour money into the continent, attracted by a virtuous circle of strong economic growth and improved governance that many have called "Africa Rising".
Last month, the Carlyle Group said it had closed its maiden private equity fund targeting sub-Saharan Africa at almost $700m – 40 per cent above target – underscoring the growing appeal of investing on the continent.
Temasek, the state-backed investment agency of Singapore, closed its first deal in Nigeria, Africa's biggest economy, last month, investing $150m in an oil and gas group. It previously spent $1.3bn to buy stakes in gasfields in Tanzania.
South Africa's Public Investment Corp, the $150bn pension fund manager for public employees, is also looking for opportunities in Africa.
But some large investors complain that often they are unable to invest in the continent due to a lack of bankable projects. Traditionally, large institutional investors only look at investment proposals worth $100m or more. In an apparent response to this issue, the Africa50 fund proposal says it will "stimulate a flow of projects from an early stage of development through financial close to operations".
The AfDB hopes to entice regional and global investors with the promise of high yields and strong economic growth.
"Based on conservative assumptions, the return on equity is expected to be 8 per cent nominal over a 15-year period," the proposal states. "Africa is emerging as an economic success story."
The bank said it had already received expressions of interest for $155m, and it was in talks with four partners for additional commitments of $470m. "These expressions of interest are an encouraging sign at this stage, given that the formal Africa50 investor roadshow has not yet started," the proposal adds.
|September, 20, 09:05:00|
|September, 20, 09:00:00|
|September, 20, 08:55:00|
|September, 20, 08:50:00|
|September, 20, 08:45:00|
|September, 20, 08:40:00|
BP and its partners in Azerbaijan's giant ACG oil production complex agreed Thursday to extend the production sharing contract by 25 years to 2049 and to increase the stake of state-owned SOCAR, reducing the size of their own shares.
The U.S. current-account deficit increased to $123.1 billion (preliminary) in the second quarter of 2017 from $113.5 billion (revised) in the first quarter of 2017, according to statistics released by the Bureau of Economic Analysis (BEA). The deficit increased to 2.6 percent of current-dollar gross domestic product (GDP) from 2.4 percent in the first quarter.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading up 41 cents, or 0.8 percent, at $50.30 by 0852 GMT, near the three-month high of $50.50 it reached last Thursday. Brent crude futures LCOc1, the benchmark for oil prices outside the United States, were at $55.91 a barrel, up 29 cents, and also not far from the near five-month high of $55.99 touched on Thursday.
“The principal risk regarding Russian and Chinese activities in Venezuela in the near term is that they will exploit the unfolding crisis, including the effect of US sanctions, to deepen their control over Venezuela’s resources, and their [financial] leverage over the country as an anti-US political and military partner,” observed R. Evan Ellis, a senior associate in the Center for Strategic and International Studies’ Americas Program.