A pledge by the Arab Bank for Economic Development (Badea) to increase funding for agriculture and infrastructure projects in Africa may soon open new opportunities for private public partnerships.

Badea will disburse $1 billion under a new five-year plan, an increase of $100 million from the previous plan. The money will support irrigation schemes, the building of rural market places, as well as funding regional trade blocks and food security programmes.

The bank’s director general Abdelaziz Khelef said the projects would help governments in sub-Saharan Africa prevent future food price crises and droughts, reports Reuters.

Khelef also said half the total funding would go to infrastructure projects such as new roads to boost trade between regions and neighbouring countries.

Badea was set up by Arab League countries to give grants and soft loans to development projects in sub-Saharan Africa.