Data provided by iNet BFA
Loading...
See More

Comesa mulls regional infrastructure bond

Sep 27 2011 18:06 Reuters

Related Articles

SA banks on boost from trade deal

Regional organisations fail to reach targets

African leaders make pact on trade bloc

FTA will benefit weaker states: Expert

SA banks on boost from trade deal

Zuma launches free trade bloc

 
Nairobi - The African regional trade bloc Common Market for Eastern and Southern Africa (Comesa) is considering issuing a regional infrastructure bond and is seeking advisers, a senior trade official said on Tuesday.

The trade blocs Comesa, Southern African Development Community (SADC) and the East African Community (EAC) have embarked on aggressive infrastructure development to bolster their competitiveness, which investors say is hurt by problems such as poor roads and railways and unreliable power supplies.

"The advisers will tell us how to raise the money, that is why we are recruiting them. We will probably know by January," Sindiso Ngwenya, secretary general of Comesa, told Reuters after a news briefing. Ngwenya declined to comment on the possible size of the bond.

Infrastructure development is a capital-intensive business that most African governments struggling with large budget deficits cannot afford, making other regions more attractive to investors.

Members of major trading blocs in Africa plan to pitch multi-billion dollar infrastructure projects to development partners at a two-day regional conference in Nairobi to shore up financing support, a senior trade official said on Tuesday.

Ngwenya attributed the high cost of trade in the region to logistics costs, with poor infrastructure accounting for as much as 60 percent of such spending.

"Our expectation is that out of the $5.2bn projects that are ready for financing, they (development partners) will finance them," Ngwenya told Reuters.

Ngwenya added that there were more projects that still needed preparation before the trade bloc seeks funding.

Most of the estimated 30 countries in the trading blocs are landlocked, forcing them to rely on countries with ports like Kenya, Tanzania and Mozambique, incurring some of the highest costs in the world due to congested ports and poor road and railway networks.

The World Bank 2011 Doing Business report said many landlocked economies face high inland transport costs to reach ports incurring higher export and import costs than other regions.

Investors from the United States, Germany, China, among others will meet government officials and members of the trading blocs in Nairobi on Wednesday, Ngwenya said.
bonds  |  comesa  |  eac  |  sadc
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

Passive investment for retirement

The use of passive investment products, like Exchange Traded Funds, to deliver low-cost investment performance is taking off.

 
 

Start saving...

Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account
All about endowments

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...