African ministers, financial institutions and private sector leaders have called for innovative financing through asset recycling to support infrastructure development across the continent.
The call was made during a roundtable on transforming public assets into capital held during the African Development Bank (AfDB) Annual Meetings in Brazzaville, Republic of Congo.
The event was organised by Africa50 in collaboration with the AfDB Group.
Participants said African countries faced growing debt pressures, shrinking budgets and external economic shocks, making alternative financing increasingly necessary.
They described infrastructure as critical for economic growth, competitiveness, regional integration and job creation.
The stakeholders urged African governments to accelerate public asset recycling to unlock capital for new infrastructure project.
Public asset recycling is a strategic infrastructure funding mechanism where governments lease, partially privatise or securitise mature, revenue-generating public assets to private investors.
The generated upfront capital is then reinvested into building new, priority infrastructure projects without raising taxes or increasing state debt.
According to the stakeholders, the mechanism allows governments to monetise mature assets such as roads, ports, airports and energy networks to finance new investments.
President of the AfDB Group, Sidi Ould Tah, said asset recycling would help governments unlock value from public infrastructure.
According to him, the approach can attract private capital and expertise while supporting development-oriented investments.
Alain Ebobissé, Chief Executive Officer of Africa50 said the focus should now be on recycling public assets transparently and effectively.
Abdourahmane Sarr, Senegal Minister of Economy, Planning and Cooperation, said some assets could be transferred to the private sector to reduce Senegal’s sovereign risk, while others were not yet mature
His counterpart from Côte d’Ivoire, Souleymane Diarrassouba, Minister of Planning and Development, emphasised the need for reforms to attract investors.
Abdallah Sidia, Mauritania’s Minister of Economic Affairs and Development, reiterated ports and energy assets importance and capability in supporting transformative infrastructure investments.
He said they were also crucial for stimulating the development of Small and Medium-Scale Enterprises (SMEs).
Abdullah Almusaibeeh, President of the Arab Bank for Economic Development in Africa (BADEA), stated that his institution was open to partnerships involving the private sector to help African countries innovate in resource mobilisation.
Manuel Moses, CEO of African Trade and Investment Development Insurance (ATIDI), urged African governments to better secure recyclable public assets and to invest the proceeds where people needed them most.
The stakeholders called for stronger reforms, credible project timelines and improved transaction preparation to attract investors.
(NAN)
