Yemi Osinbajo, acting President, has called for public private partnership, PPP, in financing infrastructure projects in Africa to bridge the huge infrastructure gap on the continent.
Speaking at 10th anniversary of Africa Finance Corporation, APC, in Abuja, yesterday,
Osinbajo said that in the past most nations, especially African countries, were able to pay up for infrastructure projects, but that the sovereign risk environment is changing quickly.
According to him, governments had always in the past been the largest contributor to infrastructure even when payments were always never really smooth.
“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 and thier likes must now begin to look for new ways of engaging with governments. You must look for new ways of engaging with African governments,” counselled Osinbajo.
Continuing, he said, “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. There is no question at all that all of what is required, all of what we need will not be provided just by government. Government cannot finance the huge infrastructure needs of most countries. As a matter of fact, without the private sector, it is completely impossible for government to finance all the infrastructure needs.”
For instance, he said AFC that can bring the private sector and public sector together to deliver on the infrastructure the country requires.
Osinbajo commended AFC for its work in the past 10 years.“I pray that the next ten years will be the best ten years yet,” he said.