Brussels: Financing gaps worth more than US$400 billion in ACP (African Caribbean Pacific) countries can be improved by setting up a major trade and investment bank to serve the Group’s 79 members, say experts.
An EU-funded market study found the venture is not only viable, it could also spur sustainable growth by helping local ACP firms secure financing in four key areas.
These are infrastructure, trade, SMMEs (small, medium and micro- enterprises) and large industrial projects.
The ACP Secretariat is currently seeking feedback from stakeholders on the findings, including two other “financing vehicle” options, namely an ACP Invest Company or capacity-building scheme for existing bodies in the regions.
Secretariat’s Cabinet Chief, former Deputy Governor of the Central Bank of Nigeria, Dr Obadiah Mailafia, who is steering the ACP Bank project said: “The outcome of the study is not entirely surprising.
“Countries in Africa, the Caribbean and the Pacific have considerable potential for growth, if not already performing in leaps and bounds.
“They will need suitable financing to keep up the momentum.
“In order to fully capitalise on their potential, the ACP needs to give a boost to its citizens and private sector and enable them to do business effectively.”
Mr Mailafia said the ACP is made up of 79 nations, with a population of 932 million people.
“The institution, we envisage, would have to be a world class financing entity with cutting edge competencies anchored on excellence.
“We invite the international development community and the surplus-rich emerging economies to invest in this project, which is capable of making a huge difference to the life chances of almost a billion people.”
Feasibility report
Mr Mailafia said the feasibility report found the variations on the key drivers of success have not enabled them to originate, develop and finance programmes and projects.
This he said was despite generous funding by international, regional and local financing bodies such as the World Bank or national development banks.
“It has resulted decisively in meaningful industry development, firm start-up and growth, and export performance targets across the ACP region,” he said. — ACP SECRETARIAT