Is there an overblown perception of risk when it comes to investing in Africa’s infrastructure? Some institutional investors are beginning to bet that attractive risk-adjusted returns can be had from Africa’s burgeoning population, economy and tremendous infrastructure needs.
To compete with China in Africa, the White House aims to encourage US investment but will continue a troop drawdown and plans a harsh re-evaluation of foreign assistance.
Debt financing is commonly tied to the use of labour from China, there is little transparency about loan conditions and money is flowing into countries with weak governance.
The inaugural Africa Investment Forum, which took place in November 2018 and was initiated by he African Development Bank, emphasised unequivocally the importance of investment, foreign and domestic, to economic development on the continent.
Africa's integration is no longer a matter of choice. Against an international backdrop of changing political and economic priorities, Africa must plot a new course for its industrialisation and economic development, using the momentum of regional integration.
Hundreds of thousands of people in sub-Saharan Africa will get access to electricity for the first time thanks to an extra £100 million of funding from the UK government. Developers of small-scale solar, wind, hydro and geothermal projects will be supported to harness each country’s natural resources.
The battle for influence on the continent between Development Finance Institutions (DFIs) and Export Credit Agencies (ECAs) from China and the United States is set to heat up over the next decade in a fierce competition that could help Africa bridge its vast infrastructure gap faster than expected.
Experts attending this years Africa infrastructure conference say the continent needs to accelerate its infrastructure development to match the continent's growing population and rapid urbanisation to achieve development goals.
ECA assures private sector investors that dependable mechanisms have been established to facilitate and safeguard investment in transboundary projects across Africa.
Addressing Africa's infrastructure gap remains an imperative that African governments should continue to take seriously if the continent is to realise the aspirations its people as enshrined in the continent's blueprint for development, Agenda 2063 and the global agenda for sustainable development.
Smart infrastructure investments underpinned by solid governance mechanisms and strategic partnerships will be crucial to accelerating Africa’s regional connectivity and integration.
