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Momodou
Denmark
11824 Posts |
 Posted - 24 Mar 2007 : 15:33:11
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AFRICA TO HAVE AN INVESTMENT BANK
By Amie Sanneh
The Gambia Government has welcomed the establishment of the Africa Finance Corporation (AFC), a private sector led profit oriented African bank, states the Governor of the Central Bank of the Gambia.
According to Governor Famara Jatta, the AFC is meant to scale up funding of infrastructural projects in Africa.
Governor Jatta was speaking at the investors’ forum of the African Finance Corporation on Thursday at the Kairaba Beach Hotel. Through the Central Bank of Nigeria, the Federal Government of Nigeria is promoting the establishment of the AFC.
Governor Jatta said Africa has the world’s least developed financial sector. “Institutional coverage is limited and even the banking industry, the dominant sub-sector, is small and has a comparative advantage in providing short term credit,” he added.
The Central Bank Governor also added that Africa is the only continent that has grown poorer in the past 25 years. Africa he maintained, also lagged behind other regions in terms of economic growth and competitiveness.
In 2005 he said Africa received less than 1.0 percent of foreign direct investment.
Mr. Jatta remarked that the challenge for Africa is to achieve higher and sustainable growth, reduce poverty and attain the Millennium Development Goals.
This he noted can only be feasible if prudent macro economic policies and structural reforms are implemented and strong financial institutions built.
Mr. Jatta however opined that the establishment of the AFC is coming at a time of optimism about growth prospects and development in Africa.
He expressed optimism that AFC will help Africa to address its challenges in financial investment.
Also speaking at the forum, the Governor of the Central Bank of Nigeria Chukwuma C. Soludo opined that Africa missed the last century, but noted that the 21st Century is going to be Africa’s century.
Commenting on the new investment Bank, Governor Soludo revealed that AFC wants to raise one billion US dollars to start operation before the end of April.
He noted that the focus of AFC would include funding private sector led projects and the development of infrastructure across Africa.
Mr. Soludo mentioned that AFC has an authorized share capital of two billion ordinary shares of US$1 each.
He said to start with, AFC wants 51% shareholding from the private sector.
The Governor of the Central Bank of Nigeria (CBN) said AFC would be owned by financial institutions in Africa.
He pointed out that CBN is committed to invest up to US$490 million, subject to total public sector investments not exceeding 49%.
He added that the emphasis of the AFC will be private sector led, noting that its mission statement is to be the leading investment bank.
Governor Soludo said the headquarters of the AFC will be located in Nigeria and branches too will be in other member state countries in Africa.
Source: Foroyaa Newspaper Burning Issue
Issue No. 34/2007, 23 – 25 March 2007
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