Can you give us a quick background on what the Regional Maritime Development Bank is all about?
The RMDB is the brainchild of member countries of the Maritime Organisations of West and Central Africa (MOWCA), which comprises 25 countries. Having identified the need to promote indigenous participation and harness the potential of what is an estimated $100billion per annum in the maritime sector. Heads of States passed a resolution in 2009 to set up the bank and mandated Nigeria to not only host the headquarters of the bank but also take all steps to midwife the bank.
I served on an inter-ministerial committee charged with the responsibility of bringing the bank to fruition and regrettably changes in government stalled the process. However, a few years ago, CLG securities approached the current administration to revive the project and we have received excellent cooperation from the Presidency, the Minister of Transport and MOWCA itself.
Very substantial work has been executed in the intervening years and I am pleased to advise that at a recent general meeting of MOWCA member countries passed a resolution for the immediate operationalisation of the bank.
What is the current status and what are we to expect in the short to medium term?
In terms of the current situation, the Bank Charter, which governs the operations of the bank, has been signed up to by members, an interim Board has been constituted, which has been meeting actively and taking important decisions, capital calls have been made, key bank policies and strategic plans are in place, projects are being analysed for funding and have reached advanced stages, for example, a shipyard expansion in Nigeria of circa $150m and a $100m port rehabilitation facility in Cameroun, also various port projects in Cote d’Ivoire. There are also discussions on funding a National Shipping carrier for Nigeria.
With regards to expectations, the sky is the limit, the maritime sector has suffered serious neglect, its immense promise and ability to generate foreign exchange, create jobs and stimulate the economy. What we have today is very minuscule indigenous participation, with heavy foreign dominance to the detriment of the regions.
One of the debilitating factors for local entities’ growth is lack of access to finance and it is this issue, the bank seeks to mitigate. A bank strictly focussed on core maritime activities and the value chain, with flexible financing structures.
What role will the Nigerian government play in supporting the bank and its activities?
The government has played a major role to date and we must make special recognition of the passion and commitment of the Presidency and in particular, the Minister of Transport, who has pursued this matter with intense zeal. Further support expected, of course, will be to fulfil Nigeria’s hosting functions, provide policy support for transactions, meet capital obligations and of course, continue to rally other member countries to engage in the bank.
What opportunities are available in the maritime sector?
Enormous opportunities, funding will be made available to vessels acquisition, aquaculture, fishing, aqua tourism, ports and shipyards development and upgrades, intermodal transportation such as ports to rails to inland depots and human capacity development. It is useful to note that a country like the Philippines dominates manpower in global maritime activity and generates billions of dollars yearly from this. Nigeria has the human resources to match this and the bank is poised to support it. Also, there will be the promotion of the value chain such as accounting, legal and insurance services.
Can private investors be part of the bank?
Yes, indeed, as the bank is structured as 51 per cent government and 49 per cent private ownership; so, there is scope for credible private investors to come in.
There are three classes of shares, Class A is for member countries only, Class B for West and Central African investors and Class C for investors outside these two regions.
