Oliver Arauba, Group Managing Director of United Bank for Africa (UBA) Plc, explained the potential and benefits that the $30 billion Chad Connection 2030 plan will bring to the African continent and the global economy.
In his keynote speech at the UAE-Chad Trade and Investment Forum in Abu Dhabi, United Arab Emirates (UAE), Mr Arauba said Africa has grown from a point where it simply has the potential to implement such great ideas.
Speaking on the theme “Financing Africa’s Competitiveness – Building Bridges and Accelerating Progress,” he said: “For too long, the narrative around Africa has been one of possibilities. But I stand before you today to declare that the age of possibilities is over. We are now entering the age of implementation. And what we are witnessing in Chad is a masterclass in how to make that change happen.”
Mr. Arauba said the $30 billion Chad Connection 2030 plan is not just a document, but a statement of intent.
“This is a detailed roadmap to move the nation from the periphery to the center of global economic competitiveness. With 268 projects targeting infrastructure, industrialization and human development, it understands the fundamental truth that competitiveness is not born in the boardroom, but is built on the ground.”
This brings me to the core of my message today. A plan of this magnitude raises one important question.
Speaking further about financing the future, he said: “It means understanding that a reliable electricity grid is the foundation for industrial growth. Chad’s goal of 60 percent electrification by 2030 will enable factories to operate, agricultural cold chains to function and a digital economy to thrive.”
“This means recognizing that access to water for an additional 11 million people will drive economic transformation. Safe water reduces the burden on health care, enables the food processing industry and unlocks agricultural productivity across the value chain,” he added.
“That means identifying the strategic value of infrastructure. When we fund roads, we fund market access. When we build renewable energy PPPs, we fund both climate resilience and energy independence. When we support digital payment systems, we create the foundation for inclusive economic growth. And it’s built with governance that assures investors that their capital is safe and their projects are delivered,” he said.
Arauba said the bank believes the capital to transform Africa exists within and outside the continent.
“The challenge is never a lack of capital, but rather a lack of bankable structures and reliable partnerships, including large domestic capital imbalances.According to the African Finance Corporation (AFC), Africa’s domestic financial assets total around $4 trillion ($2.5 trillion in commercial banking assets, $7.2 trillion in foreign exchange reserves, etc.) 5 billion in pension assets, $455 billion in pension assets, and $320 billion in insurance assets), that proportion is less than $15 trillion. Cents of these assets are now being channeled into productive infrastructure that is essential for growth, and this is the gap we are bridging.”
“At UBA, our commitment is twofold. We are architects of national infrastructure and champions of grassroots financial inclusion. Here in Chad, this is not a promise, but a proven track record. We have already committed more than $102 million in direct investments in securities in Chad, bringing clean energy to homes. From a $49 million domestic gas project in India to a $6.7 million wind farm in India, we are the lead investor in important national projects.”Amjaras and essential funding for road maintenance and communications modernization demonstrate a deep and vested partnership in Chad’s development challenges,” he added.
