AfDB to loan US$ 293 million for regional infrastructure development

By Richard High12 November 2008

In an effort to boost regional economic growth and reduce poverty the African Development Bank (AfDB) has approved a US$ 293.4 million loan to Tunisia, Mozambique and Third Emerging Capital Partners Africa Fund (EAF 3).

Under the AfDB's Private Sector Window US$ 150 million will help finance the Hasdrubal Oil and Gas Field Development Project, located in the Gulf of Gabes, 350 km south-east of Tunis.

The project involves the construction of a standalone, concurrent gas, condensate, and oil system in the Gulf of Gabes, about 100 km from the coast. Exploitation of the Hasdrubal field has only recently become viable due to prevailing high oil prices and improved estimates of available reserves.

Almost 1200 local jobs will be created by the project.

In Mozambique a US$ 93.4 million loan will help finance its second poverty reduction programme, which aims at improving governance, human capital and economic development by enhancing transparency and accountability in the use of public resources at the national and district levels.

The AfDB also made a US$ 50 million equity investment in the Third Emerging Africa Fund (EAF 3), a pan-African private equity fund managed by Emerging Capital Partners, which is targeting a capitalization of over US$ 1 billion for the financing of infrastructure projects across the continent.

The EAF 3, incorporated in Mauritius, will be among the largest private equity funds in Africa and will mobilize risk capital and bring investment know-how to the continent to support the broad private sector development priorities of Bank Group Regional Member Countries.

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