Billions earmarked for African infrastructure

Billions of dollars have been earmarked for infrastructure development primarily in Africa by the World Bank’s Infrastructure Recovery and Assets (Infra) platform and the Infrastructure Crisis Facility (ICF). “As developing countries are facing the trials of the global economic crisis, it is vitally important that economic stimulus packages in the developed world are accompanied by support to those that cannot afford multi-billion bailouts,” said World Bank president Robert Zoellick when launching the new initiatives. “A decline in infrastructure leaves weaker foundations for long-term economic growth that hits the poorest the hardest. We have a chance to avoid the errors of the past and scale up financing and help countries identify critical investments.” The two funds will together “mobilise” more than US$55-billion over the next three years to infrastructure projects in developing countries, according to the World Bank. Assistance will be global, but the bank says Africa is expected to see a large proportion of investments, given large identified needs on the continent. Out of the total, US$45 billion is available in lending from the World Bank and US$10 billion is available via IFC. The two initiatives will help to create jobs and lay the foundations for future economic growth and poverty reduction. Infrastructure projects are widely recognised as key to job creation and laying the ground work for future productivity and growth. Because of its labour intensity, infrastructure is an important element in most government stimulus packages around the globe, says the bank.