African Development Bank commits to infrastructure development
Bonds could soon be issued to central banks by the African Development Bank to fund infrastructure projects across the continent.Bonds could soon be issued to central banks by the African Development Bank to fund infrastructure projects across the continent.
According to Donald Kaberuka, president of the organisation, the strategy could generate more than €17.8 billion, Vanguard reports.
Central banks would be required to hand over a share of their foreign reserves, but he is optimistic states that sign up to the plan will get a good return on their investment.
This is because the money would go towards valuable infrastructure projects that could boost economic output across the continent, such as airports and ports.
"The time has come for us Africans to tap into the surpluses of emerging countries - that is where the money is," Mr Kaberuka commented.
However, he argued that since charity should begin at home, Africa should tap into its own resources.
The idea will be put on the table during an upcoming meeting of the International Monetary Fund in Japan later this year.