Food, Fuel Rises Could Erase Africa Debt Gains-Afdb
Economic gains which debt forgiveness has brought Africa could be erased by soaring food and fuel prices, the African Development Banks President warned on Friday.
Donald Kaberuka said the bank would set up a 1 billion US dollar additional lending facility to agricultural projects across the continent. Further financing was planned for projects that would enable nations to substitute the use of oil as a fuel source, he added.
Kaberuka noted that the 1 billion dolar facility for African countries would raise to 4,8 billion the total amount the bank has provided for the growth of the continents agricultural sector.
Most African nations have made economic gains on the back of debt relief from the International Monetary Fund, the AfDB, World Bank and other Western lenders, he said adding that there was need to promote investments in hydro-power generation to support economic development.
Kaberuka was speaking after signing a 500.000 dollar grant with Zambias Finance Minister Ngandu Magande intended to help the southern African country cope with the effects of floods during the last rainy season.
Meanwhile, investors are beginning to look for other opportunities in the commodity sector as the prices of wheat, corn, and soyabeans slip from record highs, and the focus is moving to companies involved in food and agriculture.
A lot of fund managers realise commodities have had a good run in the past 18 months and now there is concern this will not continue in the long term, says Jean-Marc Debricon, head of structuring at Rabobank, the Dutch agribusiness co-operative bank.
Kilde: www.worldbank.org
