InfraCredit, a specialised infrastructure credit guarantee institution has signed a Memorandum of Understanding (MoU) with the United States Trade and Development Agency to bring high-quality U.S. infrastructure solutions to Nigeria.
InfraCredit is backed by the Nigerian Sovereign Investment Authority (NSIA), Private Infrastructure Development Group companies GuarantCo and InfraCo Africa, KfW Development Bank, Africa Finance Corporation and African Development Bank.
Under the terms of the MoU, USTDA and InfraCredit will work together to identify infrastructure projects that could benefit from project preparation funding and subsequent credit enhancements.
This collaboration will facilitate the development of bankable infrastructure projects highlighting U.S.-based solutions and bring them to market for InfraCredit’s investment-catalysing guarantees.
The sectors of cooperation highlighted in the MoU included clean energy, information and communications technology, transportation, agribusiness and healthcare infrastructure.
Commenting, Enoh Ebong, USTDA’s Acting Director, said: “The foundation of any strong partnership consists of trust, mutual respect and collective prosperity. These principles are central to our relationship with InfraCredit. USTDA’s three decades of project preparation expertise is an excellent complement to InfraCredit’s financial guarantees.
“Under our partnership, we will leverage each other’s resources to overcome many of the constraints that inhibit the bankability of infrastructure investments in Nigeria.”
Also commenting, Chinua Azubike, Chief Executive Officer of InfraCredit, said: “USTDA’s project preparation and partnership-building activities have supported InfraCredit in executing well-structured, bankable infrastructure projects that can access long term domestic institutional investments in Nigeria’s debt capital market. We believe this relationship is catalytic in strengthening local capacities and promoting domestic resource mobilisation for infrastructure finance in Nigeria.”
Currently, USTDA and InfraCredit are collaborating with Nigeria’s Hotspot Network Limited on the deployment of up to 2,000 cellular base stations that would expand digital connectivity in rural Nigeria.
A USTDA-funded feasibility study on the project is currently underway for InfraCredit’s financial guarantee. Since 1992, USTDA has funded nearly 80 project preparation activities in Nigeria.