African Infrastructure Developers Propose Solutions for Tapping Billions in Investor Interest

Cape Town, South Africa (Capital Markets in Africa) —High quality infrastructure project development with the support of an improving enabling environment in Africa holds the potential to unlock billions in new private investment.

Africa’s high growth and huge development potential hinge on building and expanding modern infrastructure, and private investors are more willing than ever to fund strong projects on the Continent under the right conditions, according to experts who gathered in Cape Town today at the first Africa Investor CEO Infrastructure Developers’ Summit

While only about half of the more than $90 billion in regional infrastructure needs are being financed from any source today, regional and global financiers face a scarcity of projects capable of being funded. IFC, a member of the World Bank Group, through IFC InfraVentures was the lead sponsor of the event, aimed at spurring action to increase the pipeline of financially viable projects being developed conditions that support them.

“There is no question that Africa is rising,” said Jean Philippe Prosper, IFC Vice President for Global Client Services, in opening keynote remarks. “However, Africa still faces many challenges—the biggest of which is infrastructure. Infrastructure project development takes time and risk, and investors will only commit the effort if the conditions are right. We want to encourage policymakers to build more capacity to improve regulation and institutions, and public-private partnerships that balance interests through appropriate risk sharing mechanisms.”

“Infrastructure investment continues to be the single most catalyzing opportunity to boost industrial development and job creation in Africa,” said Hubert Danso, CEO of Africa Investor, “There is dearth of engagement of development partners with project developers working on the continent, and so today we brought many of them together to encourage ideas on how to increase the pipeline of future projects that can lead African growth into the future.”