The African Development Bank (AfDB) Thursday released a new report on ”structured finance” techniques and economic growth in Africa, saying ”seven out of the 10 fastest-growing countries in the last few years” are from the continent.
AfDB, in a statement received here by PANA, said the new report explored how structured finance techniques can mobilize African domestic capital to support economic infrastructure projects and economic growth.
The new report, entitled “Structured Finance – Conditions for infrastructure project bonds in African markets”, is said to set conditions for successful infrastructure project bonds in African markets.
The bank said: ”The release of this new report comes at a very opportune time. African countries have been growing at rates in excess of five per cent.
”Indeed, seven out of the 10 fastest-growing countries in the last few years are in Africa. This has created a growing middle class and a flourishing financial sector.”
The bank said that savings in Africa are accumulating with institutional investors such as the pension funds and insurance companies.
”Africa has the financial resources to play a significant role in building African infrastructure, especially since domestic capital markets are growing in several countries,” the statement noted, adding:”Domestic government bond markets are well established and becoming increasingly sophisticated. In many markets, non-government issuers are actively raising funds.”
Furthermore, the report is said to have explained the crucial role of constructive government policies and draws the lessons from other markets that might be useful for Africa.
The report would be launched by AfDB Vice President, Charles Boamah, on the sidelines of the IMF-World Bank Spring Meetings in Washington, DC.