Nigeria and other developing countries are poised to benefit from trillions of dollars in infrastructure investment by multilateral banks and private sector.
This was part of the resolution of a meeting of the Global Infrastructure Forum 2017 held in Washington on Saturday as part of the Spring Meetings of the World Bank and the International Monetary Fund.
At the meeting, leaders of the top multilateral development banks (MDBs) agreed to deepen their collaboration to encourage private sector investment in vital infrastructure needed to support sustainable and inclusive economic growth throughout the world.
The forum brought together potential investors, representatives of the United Nations and the G20 with the heads of the African Development Bank, Asian Development Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, Inter-American Investment Corporation, International Finance Corporation, Islamic Development Bank, New Development Bank and the World Bank.
Basic infrastructure services like roads, water and sewage lines, and electrical power, are scarce in many developing countries, including Nigeria.
Over one billion people live without electricity, more than 660 million people don’t have access to clean drinking water, and one in three people lack access to flushing toilets and sewerage infrastructure. In addition, countries face the urgent need to invest in climate-resilient infrastructure and renewable, efficient energy sources.
The World Bank President, Jim Yong Kim, had said at his opening address to the meetings on Wednesday that “With trillions of dollars in capital sitting on the sidelines earning low or even negative returns, deeper engagement with the private sector can create win-win scenarios where investors earn better returns on long-term investments and developing countries get much needed investment and expertise.”
In order to fulfill commitments that countries throughout the world made to meet the ambitious Sustainable Development Goals, the MDBs pledged not only to leverage their resources by joining forces to co-finance projects, but also to help generate interest among private sector investors in Public-Private Partnerships and the development of infrastructure as an asset class for institutional investors.
Nigeria’s Amina Mohammed, who is the Deputy Secretary General of the United Nations, and Wolfgang Schäuble, Finance Minister of Germany, which currently chairs the G20 were among speakers at the day-long event.