Saudi Arabia’s Public Investment Fund (PIF) is keen to inject investment into Egypt’s Sovereign Wealth Fund (TSFE) as well as into other projects, reports say citing a statement from the Egyptian government.

TSFE has according to the statement submitted investment proposals to the Saudi fund. The announcement came during Wednesday’s meeting between Egypt’s Moustafa Madbouly, Ayman Soliman, the TSFE CEO and Saudi State Minister Issam bin Saad.

Saad made the trip to Egypt to review previous works, investment agreements previously signed, and to review the investments that TSFE proposes for the PIF to study. Saudi Arabia is the regional leading backer of the regime of President Al Sisi who came to power in 2013 following a coup d’état against first democratically elected President Mohamed Morsi.

The Gulf country has pumped billions of dollars as well as grants into Egypt’s economy. During his last official visit to Egypt in 2016, King Salam oversaw the signing of several investment agreements worth 60 billion riyals between PIF and the Egyptian government. The investments covered several areas including energy, agriculture and maritime transport.

Written by: Peter Mulvany on November 6, 2020.
Last revised by: Jaber Ali

The Africa Energy Forum 2020 joins forces with the African Utility Week and POWERGEN Africa and Oil & Gas Council’s Africa Assembly this October to host a ‘Digital Africa Energy Festival’ – the largest ever energy event for the African continent.

A month-long digital platform featuring a vast array of content & networking offerings, delivering critical information at a time when the industry needs it most.

ABIDJAN, Ivory Coast, August 28, 2020/APO Group/ — Newly reelected African Development Bank (AfDB.org) President Akinwumi Adesina voiced great optimism about Africa’s future as the institution closed its 55th Annual meetings. The Bank’s Board of Governors today unanimously voted for a second five-year term for Adesina, giving him a mandate to renew a focus on the institution’s priorities, including closer continental integration, boosting renewable energy sources and developing infrastructure.

The election of the president was the centerpiece of the two-day meetings, held virtually for the first time in the Bank’s history amid the ongoing COVID-19 pandemic.

The pandemic formed a backdrop that underscored the Bank’s critical leadership role in assisting African countries to marshal responses to its health and economic impacts. A wider commitment to grow Africa’s resilience by building back its economies post-pandemic with an eye to mitigating climate change and assuring more equitable growth, is also an important agenda for the Bank.

In a 16-point communique, Governors lauded the Bank’s swift response to the pandemic, endorsed its strategic priorities, and urged greater emphasis on building out primary healthcare infrastructure and supporting member countries meet their Paris Agreement commitments.

“We urge the Bank Group to deepen its collaboration with the African Union and the Regional Economic Communities (RECs) to fast-track Africa’s integration and economic and social transformation particularly in view of the implementation of the African Continental Free Trade Area, which has the potential to increase growth, enhance competitiveness, improve the business climate, as well as ensure greater investment and development of regional and continental global value chains,” the communique stated.

In closing remarks, Chairperson of the Board of Governors, Niale Kaba, the Ivorian Minister of National Planning, noted the Governors achieved consensus.

ABIDJAN, Ivory Coast, August 27, 2020/APO Group/ — Dr. Akinwumi A. Adesina has been re-elected to serve a second fiveyear term as President of the African Development Bank Group (AfDB.org) on Thursday, August 27, 2020 by the Board of Governors of the Bank.

A globally renowned development economist and a World Food Prize Laureate and Sunhak Peace Prize Laureate, Dr. Adesina has distinguished himself in driving a bold agenda to reform the Bank and accelerate Africa’s development. He was first elected as President of the Bank on May 28, 2015.

As newly re-elected President, Dr Adesina, a former Nigerian Minister of Agriculture, will begin his new term on September 1, 2020.

The election result, which gave him a hundred percent of votes of all regional and non-regional members of the Bank, was announced by the Chairperson of the Board of Governors of the Bank, Mrs. Niale Kaba, Minister of National Planning of Côte d’Ivoire.

The election took place on the final day of the 2020 Annual Meetings of the African Development Bank Group, which was held virtually for the first time in the Bank’s history.

Minister Niale Kaba, said, “I am delighted that the Board of Governors have re-elected Dr. Adesina for a second term in office as President. As shareholders, we strongly support the Bank and will give him all the necessary support to carry forward and implement his compelling vision for the Bank over the next five years.”

“We will ensure that [which] we had seen during the construction of the 2010 infrastructure roll-out does not happen. We’ve got lessons we’ve learnt from what we picked up when we rolled out the 2010 infrastructure,” says Mogajane.

The National Treasury, the Development Bank of Southern Africa (DBSA) and the newly established Infrastructure South Africa have partnered to make the Infrastructure Fund a reality.

This is two years after President Cyril Ramaphosa announced an Infrastructure Fund.

Once fully up and running, the fund will be used as gap funding for infrastructure investments, according to the parties. The National Treasury, DBSA and Infrastructure South Africa have entered into a memorandum of agreement, outlining each entity’s roles and responsibilities.

The support from the Infrastructure Fund will include blended co-funding, capital subsidies, as well as interest rate subsidies and government guarantees. The government has earmarked R100bn over 10 years, with the first R10bn provisioned in the February national budget.

“The R10bn is there, we didn’t touch it,” says Mogajane. That is despite considerable pressures on the fiscus arising from the COVID-19 crisis, which necessitated a reprioritisation of government spending.

Public procurement and the riddle of corruption

In the build-up to the 2010 Soccer World Cup, South Africa experienced an infrastructure boom, aided by the construction of stadiums and associated facilities.

However, that was marred by endemic corruption which resulted in major construction companies incurring massive fines for collusive pricing and tendering.

In recent weeks, National Treasury tightened emergency procurement regulations to stem the occurrence of widespread corruption. The initial regulations were intended to speed up the procurement of personal protective equipment (PPE) and make the process less onerous.

READ MORE South Africa VS Coronavirus: Public finances looking prickly

But the PPE procurement process has been mired in controversy. President Ramaphosa’s spokesperson is currently on a leave of absence following revelations her husband might have allegedly irregularly benefited from a PPE tender. The National Treasury and DBSA have moved to dispel perceptions that the Infrastructure Fund will fall foul of governance.

Maximum vigilance

“… As custodians of public finance, we will ensure that we are like eagles and hawks on top of the funds,” assures the National Treasury director-general, pointing out that, “we’ve got procurement rules in place, and we will be strengthening them.” The Infrastructure Fund process should be transparent, fair and competitive, adds the National Treasury’s most senior official.

“We are not going to accept – whether it’s the corruptor or the corruptee – … into this space,” insists Mogajane. The National Treasury will facilitate funding requirements through the budget process and finance 50% of the Infrastructure Fund’s running costs.

But why the two-year delay? “Unfortunately, [there has been] … no proper pipeline of projects,” explains Mogajane. Now, however, there are 55 projects – and others with potential.

READ MORE Social infrastructure investment, a development priority in Africa

“I couldn’t agree more with Mr Mogajane on the corruption … [and] making sure our procurement is in no way compromised,” says Patrick Dlamini, the DBSA CEO. “We want this thing to work. We are not going to disappoint you on this one.”

Infrastructure pathway to greener future

Dlamini explains there is a lot of funding becoming available from international bodies, which will be able to come in and blend finance. Crucially, this funding will come on stream during the early stages in the form of risk capital.

Dlamini envisages that brownfield projects, greenfield projects, sustainable development and green energy will form part of the infrastructure mix. “We will see all manner of projects talking to the sustainable development of this country,” says the DBSA CEO.

A key consideration will be how projects will contribute to South Africa’s low carbon trajectory. “We are one of the signatories to the United Nations. How do we [then] drive the ambition of the Paris Accord,” says Dlamini.

Some of the answers lie in sustainable infrastructure development. Kgosientso Ramokgopa, the Infrastructure South Africa CEO, said: “The fund is an instrument. There is a robust exercise in terms of prioritising and packaging projects.”

By Xolisa Phillip, in Johannesburg

The company would leverage local and international funding, and would be co-owned by the CBN, African Finance Corp., and Nigerian Sovereign Wealth Investment Authority. It would be exclusively managed by an independent infrastructure fund manager.

The company would initially inject $39 billion in Nigeria over five years.

BY KALI PERSALL