The African Development Bank’s Board of Directors has issued an official approval for a US$75 million commercial loan to the Ghana Infrastructure Investment Fund (GIIF).
The African Development Bank’s loan will make it possible for the Ghanaian state-owned GIIF to effectively leverage its paid-in equity capital of US$325 million to acquire additional debt facility to finance many critical Ghanaian infrastructure projects.
It will also help cut back the country’s infrastructure gap which is currently estimated to be several billions of dollars wide.
“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 it first launched in 2016, the Fund has disbursed over 88% of its equity funding capital towards different infrastructure projects across various sectors, including transport, climate-resilient energy, ICT, and affordable housing sectors.
It has also mobilized over one billion dollars in private capital from several different sources both domestic and foreign.
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