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Private Capital Not Enough For Nigeria Infrastructure Needs - Export Import Bank CEO

© http://www.neximbank.com.ng/Roberts Orya, CEO of the Nigerian Export Import Bank
Roberts Orya,  CEO of the Nigerian Export Import Bank - Sputnik International
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Future business and investment partnerships between the US and Africa look optimistic, but private investment will not be enough for the construction of much needed large infrastructure projects on the African continent, CEO of the Nigerian Export Import Bank, Roberts Orya told RIA Novosti.

WASHINGTON, August 5 (RIA Novosti) - Future business and investment partnerships between the US and Africa look optimistic, but private investment will not be enough for the construction of much needed large infrastructure projects on the African continent, CEO of the Nigerian Export Import Bank, Roberts Orya told RIA Novosti.

“The amount that is required to finance infrastructure in Africa, you cannot leave it in the hands of the private sector alone,” said Orya, who attended the GE forum, Powering Inclusive Growth, on the sidelines of the US-Africa Business Summit this week in Washington, DC.

“The private equity is coming in...but that is not just enough. Because in Nigeria, you need $14 billion US Dollars annually to be able to take care of infrastructure,” the expert added.

Power infrastructure, roads, railways are all economic components that require massive amounts of investment. According to Orya, “even the power sector alone that is what you need to be able to bring power to the level that Nigerians can enjoy.”

Orya was less specific about the role of governments in financing such critical projects saying only that the government had a role to play “to provide a good environment, provide some kind of transparency.”

According to a report focused on Sub-Saharan Africa (SSA) power consumption and generation by GE, the region has been growing at an average of two percentage points per year. Since the 2008 economic crisis, SSA has emerged as the second fastest growing region in the world and home to approximately 13 percent of the world population.

While the needs of the population for basic economic infrastructure and particularly energy infrastructure are immense, according to the GE report, “SSA has made limited progress so far in developing a manufacturing sector.”

Orya noted such difficulties in bringing in components and labor from abroad, which can limit the broader economic benefits of large-scale infrastructure construction. “We don’t have that capacity now to say we have gotten to that level where we can produce our own technology in hour or internally to take care of this.” He noted that Nigeria is liberalizing their economy and bringing in a lot of private investors, “We have provided a very good platform to allow investors to come in.”

Orya is hopeful for the future of US-Africa business partnerships and the overtures President Barack Obama made in inviting the largest delegation of African leaders onto US soil in history. “It is very promising,” said Orya.

“One would have said that the action that has been taken by the President is a little late, but it is not yet late,” the expert concluded.

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