Browsing: Africa infrastructure financing

African countries urged to approach infrastructural projects jointly

Why African infrastructure projects fail to secure funding

Business

In a previous article, it was established from research that private investors globally have at least US$500 billion in funds under management which they desire to deploy in the development of infrastructure projects across Africa. Africa being the continent that needs this most is ironically the continent that spends the least on the development of its infrastructure. The potential and scope for funding African infrastructure is enormous; however such potential is hamstrung by the state and management of public finances and the debt levels of African governments. 

Statistics show that less than 10% of infrastructure projects in Africa reach completion and that 80% fail at the feasibility and business planning stage. Projects fail for various reasons the biggest being limited capabilities, which include the ability to draw up realistic budgets, designs, and implementation of the said infrastructure projects with commercial potential due to short political cycles that challenge commitments to

…

How Africa can attract private finance to its development-IMF

Industry and Trade

Africa has abundant natural resources and holds immense opportunities for investors to unlock its full potential.

According to the International Monitory Fund (IMF), Africa’s hardwon economic gains for the last two decades which are critical in improving living standards can be reversed from the impacts of the pandemic.

The scope for growth through large public investment programs is limited by the uncertain outlook for international aid and the high public debts levels. In its statement, the IMF notes that if countries in the region are to enjoy a strong recovery and avoid stagnation, Africa’s private sector will have to be more involved in economic development.

According to IMF, the private sector should be involved in both social (health and education) and physical (roads and electricity) infrastructure.

“Africa’s infrastructure development needs are huge—in the order of 20 per cent of GDP on average by the end of the decade. How can …

Koreans to embark on Africa infrastructure financing through TDB

Industry and Trade

The Eastern and Southern African Trade and Development Bank (TDB) and the Korean Overseas Infrastructure & Urban Development Corporation (KIND), have signed a memorandum of understanding to cooperate on infrastructure financing in the region.

KIND is a newly established organization by the Korean Government to proactively support global public-private partnerships and infrastructure and urban development for sustainable growth in emerging markets, with the Africa office headquartered in Nairobi.

KIND President and CEO Kyong-goo Hur noted that since the world is facing drastic climate changes and rapid urbanization today, the need for infrastructure investment is emerging greater than ever with the gap between infrastructure demand and supply hardly to be filled in the near future.

“The highest priority, therefore, has been attached to infrastructure investment not only in Korea but also in other numerous countries on this globe,” President Kyong-goo added.

Furthermore, KIND is now ready to serve as a facilitator …