AfDB, GIIF to develop Volta Economic Corridor
The African Development Bank (AfDB) has signed an agreement to collaborate with the Ghana Infrastructure Investment Fund (GIIF) and the 24-Hour Economy Secretariat in an ambitious effort to reposition the Volta Lake as a multimodal transport spine for agriculture and industrial expansion.
The agreement is also expected to transform the Volta Economic Corridor into a gateway for cross-border trade with landlocked neighbours such as Burkina Faso, Mali and Niger.
The signing of the agreement in Accra last Thursday came on the heels of Wednesday’s launch of the 24-Hour Economy and Accelerated Export Development Policy by President John Dramani Mahama to promote around the clock production, enhance export competitiveness and attract private investment through strategic public private partnerships.
24-Hour economy
The secretariat will under the agreement lead the coordination and strategic implementation of the Volta Economic Corridor project while GIIF will serve as the anchor institution for infrastructure.
The secretariat is also to set up three Special Purpose Vehicles to drive investment and execution across critical domains such as inland water transport and port infrastructure, agro ecological parks, irrigation systems, lakeside industrial parks and logistics zones.
The Presidential Advisor and Head of the 24-Hour Economy Secretariat, Goosie Tanoh, who signed on behalf of the government, said the partnership was a strong endorsement of the potential of the 24-Hour Economy programme.
He said it signalled the commitment of the country to mobilise transformative capital, world-class expertise and public-private partnerships to drive the 24-hour production ambition and unlock export competitiveness.
“The AfDB’s collaboration with GIIF and the 24-Hour Economy Secretariat gives us confidence that we can deliver projects that create jobs, raise incomes and position Ghana as a leading trade and industrial hub under the African Continental Free Trade Area (AfCFTA),” he added.
Mr Tanoh said the programme would be driven by the private sector with a seed funding of government helping to unlock larger pools of private capital.
The Director of Infrastructure and Urban Development at the AfDB, Salawou Mike Moukaila Bamidele, who also signed for the bank, said “We will work jointly to identify technical assistance needed to improve feasibility studies, due diligence and order of preparation activity to accelerate transport and preparation of the stock market support.”
Secondly, he said the AfDB would explore co-financing opportunities, work to structure catalytic debt financing and guarantee the funding of private investment into infrastructure and productive sectors of public policy.
Capacity building
Mr Salawou said his outfit would be giving knowledge exchange and capacity building and share best practices, technical tools and policy insight to enhance the quality of the impact of the proposal.
He further gave the assurance that the bank would continue an open dialogue to explore other areas of mutual interest to look at the closing and the development of the initiative.
Together, Mr Salawou said, the three bodies would identify actionable areas where the bank could leverage its technical, financial strength and expertise to support the transformation agenda of the country.
“As many of you know, transport infrastructure is a core pillar of the AfDB’s operation and is also at the centre of our 10-year strategy, and of course, the high-five that we know very well.
“Across the continent, there is a diverse activity road, railway, port, the distinct multimodal project that connects the economy to create markets, reduce the distinct cost, and also enhance the economic internet,” he pointed out.
The Chief Executive Officer (CEO) of the GIIF, Nana Dwemoh Benneh, for his part, expressed optimism that the GIIF with support from the seed funding by the government was well positioned to attract the necessary capital for full scale implementation of the programme.
