EU to increase funding of energy projects in Africa

But the challenge of raising funds still exists, said the Trust Fund in its annual report for 2008.

“The global financial crisis, which restricts credit and creates uncertainties, will continue to affect all economic operators, including potential sponsors of infrastructure projects,” notes the fund’s financial report.

A recent report by Oxford University found out that since the financial crisis started, new lending by the International Monetary Fund had increased but only 1.6 per cent of the money is being directed to Africa. The bulk of lending — 82per cent — goes to European countries.

Calls for additional funds such as the World Bank’s proposal to the G20 countries to devote 0.7 per cent of their stimulus package fund to finance poor countries have been ignored.