African Leaders to Consider New $4 Billion Investment Bank

December 24th, 2009 | by addis portal |

By Jason McLure

Dec. 23 (Bloomberg) — South Africa, Nigeria, Libya, Algeria and Egypt will each contribute $300 million to establish a pan-African investment bank under a plan to be considered by heads of state from the African Union at a summit in February.

The AU’s 47 other member states will contribute an extra $1.5 billion, while the bank tries to raise $1 billion from the private sector and regional blocs such as the Southern African Development Community, said René N’Guettia Kouassi, director of economic affairs for the AU Commission.

“The decision to establish the African Investment Bank is based on the growing financial needs of the continent,” he told a press conference in the Ethiopian capital, Addis Ababa.

The bank will be wholly owned by AU member countries, unlike the Tunis-based African Development Bank, whose shareholders include the U.S., Japan, Belgium and other non- African states. The new bank, to be based in Libya, will start operating once 15 countries have ratified its founding documents, Kouassi said.

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