Lions on the move II: Realizing the potential of Africa’s economies

September 2016

Africa’s economic fundamentals remain strong, but governments and companies will need to work even harder to keep the region’s economies moving forward. Read more

Infrastructure as a Global Asset Class with Attractive Opportunities in Africa:

Institutional investors are increasingly accepting infrastructure as a distinct asset class and are looking for opportunistic investments globally. Bain & Co. estimates that the infrastructure market is valued at $4 trillion, combining fixing deteriorating infrastructure and building new projects in the U.S. while investing relatively smaller allocations in emerging and frontier economies across Africa and Asia. In 2015-2016, global infrastructure funds raised record funds with targeted allocations in frontier markets in pursuit of higher returns in the fastest growing regions with the highest demand for infrastructure.Some notable closings include:

Actis closes fourth energy fund at $2.75 billion, targeting Latin America, Africa and Asia

Global Infrastructure Partners closed a $15.8 billion fund, the largest-ever dedicated to infrastructure

 

Things you should know about infrastructure in Africa:

For the last twenty five years, Africa has enjoyed rapid economic growth. Across Africa, infrastructure (energy, water, transport and ICT) contributed 99 basis points to per capita economic growth from 1990-2005, compared with 68 basis points for other structural projects. Read More

 

 

Infrastructure Financing in Sub-Saharan Africa: Best Practices From Ten Years in the Field (BSC-AFC)

This report is a joint effort of Boston Consulting Group and the Africa Finance Corporation, focusing on the climate for infrastructure investment in Sub-Saharan Africa. The key chapters of the report cover the logistical, financial, and sociopolitical challenges of infrastructure investment in the region; key considerations and strategies for governments pursuing such investments; and corresponding considerations and strategies for private investors to weigh in doing the same. The report also presents ten case studies of major infrastructure projects in the region.[Read More]

 

New Research/Publications:

Brookings: Closing the financing gap for African energy infrastructure: Trends, challenges, and opportunities

Milken Institute: Developing the Buy Side – Capital Markets in the East African Community

AfDB: African Economic Outlook – Chapter 4: “Financing Africa’s Infrastructure: New Strategies, Mechanisms, and Instruments”