By John Oyuke
Kaberuka said African governments have foreign exchange reserves amounting to $450 billion (Sh37.8 trillion), usually invested in low or zero interest earning accounts overseas.
He said if African governments were to invest just 5 per cent of this money held overseas in this infrastructure bond, which will be guaranteed by the AfDB, Africa would be able to raise $22 billion (Sh1.87 trillion) easily.
“This is three times the amount committed by the World Bank and AfDB to sub Saharan Africa,” Kaberuka said at th-e Kenya Bankers Association 50th anniversary in Nairobi.
With additional investments from other international investors, the continent can easily raise $40 billion, which would go a long way in bridging the infrastructure financing gap in Africa, Kaberuka, who was the chief guest observed.
The Tunis-based multilateral development bank estimates that Africa needs over $90 billion per year to tackle the infrastructure deficit.
Kaberuka said AfDB is an AAA-rated institution and, therefore, a guarantee from the Bank would offer sufficient comfort to international investors.
“Time has come to work with a triple A-rated African institution like AfDB to invest on their behalf,” he asserted.
The Bank’s projects include the Thika Superhighway and the Athi River–Namanga Road.