The African Development Bank’s Board of Directors has officially approved a $75 million commercial loan to the Ghana Infrastructure Investment Fund (GIIF) according to a statement by the bank.
The African Development Bank’s loan will enable the Ghanaian state-owned GIIF to efficiently leverage its paid-in equity capital of $325 million to secure additional debt resources to finance several critical Ghanaian infrastructure projects and reduce the country’s estimated multi-billion dollar infrastructure finance deficit.
“This loan is an important step to anchor the sustainability of a national infrastructure financing vehicle in Ghana, a model we’d like to promote to bridge the infrastructure financing gap over the continent,” said Amadou Oumarou, African Development Bank Director for Infrastructure & Urban Development.
Since 2016, the Fund has committed over 88% of its equity investment capital towards several infrastructure projects within the transport, climate resilient energy, ICT and affordable housing sectors, while successfully mobilizing over one billion dollars of private capital from both domestic and international sources.
In terms of development impact, The African Development Bank’s participation is expected to catalyze private sector-led infrastructure development, expand access to infrastructure services in Ghana, and generate significant employment opportunities.
The African Development Bank’s support aligns with Ghana’s Coordinated Programme of Economic and Social Development Policies 2017-2024 and Medium-Term National Development Policy Framework (MTDF 2018-2021), as well as the African Development Bank’s Ten-Year Strategy, and High-5 strategic priorities.
As of July 2021, The African Development Bank has provided over $3 billion of financing for various projects in Ghana, of which over $600 million has been directed towards the various road, aviation, and rail transportation projects.