Africa50, the pan-African infrastructure investment platform, has signed a Memorandum of Understanding with the Government of Zimbabwe to establish a framework of cooperation to manage and operate three of the country’s international airports under the Africa50 Asset Recycling Programme.
Asset Recycling is an innovative way for governments to unlock capital currently tied down in state-owned infrastructure assets by presenting them to credible private institutions that will pay a fair price to the government for the right to manage and operate the assets over a pre-determined period under a concession framework.
Africa50 and the Government of Zimbabwe’s framework of cooperation will cover the Harare, Victoria Falls and Bulawayo International Airports. Following an assessment of the opportunity to operate these airports under a long-term PPP scheme, Africa50 will then offer to partly or fully relieve the Government of its debt repayment burden associated with the three international commercial airports.
The Minister of Finance and Economic Development for Zimbabwe, Professor Mthuli Ncube said, “We are pleased to partner with Africa50 who are driving this initiative to support our country’s development, particularly in infrastructure. Asset Recycling can be an effective solution that enables Zimbabwe to mobilize its own and external resources to fund critical infrastructure development needs.”
“As Africa50, we have been advocating for Asset Recycling as a solution that African countries can use to raise capital to fund infrastructure and their post-Covid19 recovery programme especially within the context of the current global economy,” said Alain Ebobissé CEO of Africa50. “Asset Recycling will send a powerful message from Africa to the rest of the world that while the continent is seeking external help, it is implementing programmes that leverage its own resources to finance the continent’s post-recovery efforts and I believe that potentially billions of US dollars of capital could be freed up using this concept,” he added.
Africa50 is an infrastructure investment platform that contributes to Africa’s growth by developing and investing in bankable projects, catalysing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact. Africa50 currently has 32 shareholders, comprised of 29 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib.