AU Deepens Africa’s Economic Integration
(PANA) - Africa’s premier investment banking institution is expected to be formally launched within 24 months to provide the much-needed capital to finance infrastructural development in Africa, especially the construction of cross-border highways and the creation of telecommunication links.
| The African Union (AU) has signed a formal agreement with the host of the proposed African Investment Bank, to be based in Libya, to commence technical studies on the institutional and organisational aspects of the proposed financing vehicle for Africa. AU Commissioner for Economic Affairs Maxwell Mkwezalamba told PANA here Tuesday that efforts to create three premier financial institutions within the AU were making major progress in order to conquer the industrial underdevelopment in Africa. The AU is also spearheading efforts to deepen Africa’s economic integration through the creation of a pan-African stock exchange. Mkwezalamba said the new investment bank would complement the work of the African Development Bank (AfDB), which has been at the forefront of financing national infrastructure projects. It will also offer financial support to the private sector. "Within one to two years, it should be possible to have the protocol for the setting up of the bank signed and ratified by the various African countries," Mkwezalamba told PANA on the sidelines of the African Private Sector Forum, which opened here Tuesday. Africa’s private sector players gathered here for the two-day conference to explore ways of effectively utilising the private sector to drive Africa’s industrialisation agenda. "Issues of investments in Africa are weak in Africa due to poor infrastructure. There are institutions mostly addressing infrastructure issues but at national level. This (investment bank) would finance highways that cater for several countries," Mkwezalamba said. The AU has set up a technical steering committee to spearhead studies leading to the setting up of the bank, including working out the fine-print details of its sources of funding, management and institutional framework. Mkwezalamba said the AU signed a Memorandum of Understanding with the government of Libya two weeks ago to commence the necessary studies. "The team will go into the specific details, including where the bank’s branches would be located," he added. Meanwhile, Ethiopia’s Industry Minister Tadesse Hailu has welcomed the formation of the African Investment Bank and the plans to create the pan-African bourse, saying they offered a chance to drive Africa’s economic transformation further into the future. "These are good initiatives that help to create large markets in Africa and help promote efforts towards regional economic integration," Hailu said. |
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