Looking Inwards To Plug Africa's Infrastructure Funding Gap
Finweek English|13 April 2017

Africa’s financial sector has hitherto been reluctant to invest in infrastructure largely due to the long project timeframes involved. But with such investments offering reliable returns, what’s it going to take to properly unlock this asset class?

Paul Frankish
Looking Inwards To Plug Africa's Infrastructure Funding Gap

Despite encouraging progress over the last decade, financial systems in Africa (excluding South Africa) remain amongst the most undeveloped in the world with a shortage of diverse financial institutions. It’s the acute lack of long-term finance which is holding back economic growth and nowhere is this more evident than in infrastructure which, by the African Development Bank’s (AfDB) reckoning, needs $93bn a year in funding for the next 10 years. Of this, 40% – or $36bn a year – is required for the power sector alone.

Without universal access to electricity and better roads, ports and airports, Africa won’t be able to compete on the global stage. The AfDB estimates that poor infrastructure reduces productivity by 40% and cuts the continent’s economic growth by two percentage points per annum. In contrast, the World Economic Forum highlights the fact that every dollar spent on a capital project generates an economic return of between 5% and 25%.

Africa is not short on bold ambition. East Africa’s Grand Ethiopian Renaissance Dam will host the largest hydro-electric power plant in Africa, the seventh largest in the world once complete, with installed capacity of 6 450MW. DRC’s proposed Grand Inga Dam if/once completed would then take over as the planet’s biggest hydro-electric power project with expected generating capacity of 39 000MW. What Africa is short of though, is financing to fund those ambitions.

Funding models

この記事は Finweek English の 13 April 2017 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Finweek English の 13 April 2017 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

FINWEEK ENGLISHのその他の記事すべて表示
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 分  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 分  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 分  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 分  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 分  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 分  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 分  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 分  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 分  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 分  |
5 November 2021