By Newsdesk, with Agency report,
Nigerian and other African nations may soon start receiving funding from African Development Bank (AfDB) grant disbursement designed for Africa after its board approved a $10 million dollar grant for African Local Currency Bond Fund (ALCBF) to boost its portfolio across the continent.
It said that the ALCBF was also approved by the bank to promote development of domestic capital markets in Africa and had a tenor of seven years with a two-year grace period.
The Principal, Communications Officer, AfDB, Olivia Ndong-Obiang, stated that the loan would improve access for non-sovereign issuers to long-term funding in local currency, reduce currency and maturity mismatches and increase local financial intermediation.
Speaking to the approval through a statement in Abuja on Tuesday, Ndong-Obiang explained that fund would catalyse investments in critical sectors such as renewable energy, housing, health, education, the financial sector and agriculture in line with the bank’s High five priorities.
She added that the bank’s high five priorities were Light up and Power Africa, Feed Africa, Industrialise Africa and Improve the quality of life for the people of Africa.
“This will ultimately help grow private sector financing through capital markets,” she said.
Meanwhile, ALCBF was incorporated in December 2012 by German Development Bank on behalf of the German Federal Ministry of Economic Cooperation and Development.
“The fund has invested in Botswana, Ghana, Kenya, Zambia, Lesotho, Senegal, Côte d’Ivoire, Nigeria, Uganda, Malawi, Gabon and Togo.
“As of December 31, 2017, the fund had made 27 investments across 19 companies and in 10 currencies,” Ndong-Obiang said.