By Peter OBIORA InvestAdvocate
London (INVESTADVOCATE)-The Economic Community of West African States (ECOWAS) Commission Tuesday said its setting its sight on capitalising its Investment Guarantee Fund (IGF) to the tune of $1.0 billion.
Alfred Braimah, Director, Private Sector of the Commission said this while making a presentation at the Second West Africa Global Banking & Investment Forum in London United Kingdom (UK).
“In terms of the Investment Guarantee Fund, as at today, the African Trade Insurance Agency (ATI) is capitalised to the tune of $300 million, the maximum Capital required to set up the IGF is about $1.0 billion. The expected call up Capital to allow for a start-up of the operation is about $500 million†he said.
According to Braimah, with the collaboration of ECOWAS Commission with ATI the Capital to mobilise is about $200 million; so we are planning an Investors Forum on that to be able to give an update.
The ECOWAS Commission Director of Private Sector affirmed collaborate with ATI the Capital to mobilise is about $200 million; “so we are planning an Investors Forum on that to be able to give an update on that†he said.
Braimah said the ECOWAS Bank for Investment and Development is seeking to take up Equity Stake in the IGF.
“But let me state that our own Bank responsible for this, the ECOWAS Bank for Investment & Development clearly is interested in taking an Equity in this area†he said.
The IGF is intended to cover up for the Political Risk; which is the main worry for most investors coming to the West African sub region.
“And in terms of diversifying their product lines, we would also look at the Insurance Area; scaling up with the reinsurance platform at the Regional Level.
We cannot deliver this without money and the West African Bankers Association as well†he affirmed.
Braimah urged investors in the UK and other parts of the world to take the advantage and opportunity in the ECOWAS sub region to come and invest.
He said the Commission is currently working on infrastructural development in West Africa to help the investment climate.
This is coming on the heels of the forthcoming meeting of ECOWAS Ministers in charge of infrastructure in Yamoussoukro, Cote d’Ivoire on Friday 9th November 2012
According to Statement from the Commission, the Ministers are to agree on measures for the domestication of the Action Plan on the Programme for the Infrastructure Development in Africa (PIDA-PAP) projects, and for the strengthening of the coordination, capacity and synergies for the development of regional infrastructure.
The Statement affirmed that the Ministerial gathering being preceded by a two-day regional experts meeting, is expected to build consensus for the speedy implementation of the PIDA-PAP within West Africa, focusing on the dissemination of the outcomes of the PIDA Study and its implementation strategy as it relates to capacity building for the PIDA implementation within Regional Economic Commissions (RECs) and Member States.
It further affirmed that the meeting will specifically introduce Ministers and Experts to the intentions and objectives of the African Union PIDA and how it aligns with the continental strategic programming.
Apart from this, it will further sensitise Member States on West Africa’s component of the PIDA-PAP and regional development plans to help drive the domestication of PIDA projects in national plans and budgetary provisions.
Other objectives of the meeting are to provide a short-term pipeline (action plan) of regional projects for immediate development to be submitted for approval by the ECOWAS Council of Ministers; identify capacity building needs and knowledge requirements for project preparation and implementation in line with the Institutional Architecture for Infrastructure Development in Africa (IAIDA) approved for the PIDA-PAP; and also introduce the Terms of Reference for the proposed West Africa Infrastructure Master Plan to Experts and Sector Ministers.
