The Acting President, Prof. Yemi Osinbajo, has predicted that next 10 years would be difficult for African economies as a result of the inability of various governments to provide infrastructure.
Prof. Osinbajo challenged the African Finance Corporation (AFC) to bridge the gap in imminent infrastructure deficit in Africa.
Specifically, the acting president emphasised the need for AFC to invest in broadband infrastructure which he said had won its place as the new utility alongside electricity, transportation, telecoms, and water supply “and it is bound to affect and indeed is already defining how every one of these other utilities work and will work in the coming years.”
“It is important to mention also how in the past most nations, especially African countries were able to pay up for infrastructure projects in one way or the other. But that sovereign risk environment is changing quickly. Governments had always in the past been the largest contributor to infrastructure even when payments were always never really smooth, but they were able to offer sovereign guarantees or cash support.
“But today, that is no longer forthcoming given the huge deficits and sovereign debts that most governments now experience. So, the time certainly calls for new thinking, AFCs and DFIs like that must now begin to look for new ways of engaging with governments, you must look for new ways of engaging with African governments.
“We cannot forget that unless corporations like AFC recognise that what is important to do in these times, the next 10 years will indeed be very difficult years for our economies, for the African economy. We will be relying on AFC, our own DFIs to do much more; we will be relying on them to show much leadership to take greater risks,” he stated.
