At the G7 Summit in the Bavarian Alps of Germany, the heads of the richest countries launched a $600 billion funding programme to finance infrastructure projects in the developing world, with a particular emphasis on Africa.
The leaders of the G7, which consists of China, France, Germany, Italy, Japan, the US, and the UK, claim that the Partnership for Global Infrastructure Initiative (PGGI), an infrastructure and investment programme spanning multiple continents, will help close the infrastructure gap in developing countries.
The PGII was officially inaugurated during this year’s summit by President Joe Biden and German Chancellor Olaf Scholtz, with the introduction of flagship projects for Africa and other regions. The PGII was first proposed by the US at the last G7 Summit in Cornwall, UK, one year ago.
According to Biden, the US will raise $200 billion for PGII over the following five years through grants, federal financing, and leveraging contributions from the private sector.
The new strategy has already seen the announcement of several transactions. According to Biden, the Angolan government has agreed to pay two American businesses, AfricaGlobal Schaffer and Sun Africa, $2 billion to build solar mini-grids, solar phone booths, and home power kits in four provinces in the country’s south by 2025.
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