The member states of the Gulf Co-operation Council

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Gulf states ‘funded $30bn of African infrastructure’

30 September 2014 | By Joe Quirke | 0 Comments

A study by the Dubai Chamber of Commerce has suggested that Gulf states have played a key role in financing African development. 

The research shows that over the past decade, the member states of the Gulf Co-operation Council (GCC) have provided at least $30bn in funding for African infrastructure. This is between 7% and 10% of total infrastructure investment in the continent. 

About $15bn of the funding was in the form of loans and grants from development agencies; the other $15bn took the form of direct investment. 

The study predicts that future investment in the region by GCC states will run at about $5bn a year.

  North Africa has received most of the funding: some 65% of loans and 60% of direct investment. 

The Gulf has invested less in faster growing sub-Saharan economies such as Angola, Ethiopia and Nigeria, which have tended to look to countries such as Brazil and China for development funding. 

More than half of the funding has gone towards transport development, especially road building; 30% was spent on electricity and 15% on water projects. 

Hamad Buamim, the president and chief executive of the Dubai Chamber of Commerce, said GCC countries were well positioned by their history and culture to invest in Africa. 

Buamim said: “Opportunities are not limited to public and large companies – small companies are also well positioned to invest. Dubai Chamber’s study has revealed that given the perceived  risks associated with mega-projects in several African markets, smaller-scale projects have becoming increasingly more appealing, especially in the energy industry.” 

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