Factors assessed typically include, amongst others: As lenders, our main focus is on doing the analysis/research and applying our minds as best we can to ensure that the businesses to whom we decide to lend money will have the capacity to repay the capital provided and service the interest charged to them. Infrastructure development in Africa can facilitate economic and social growth. Water and sanitation have the largest financing gap of all the sectors, based on annual financing needs of $56-$66 billion and a 2016-2018 average commitment of $13 billion. Private Infrastructure Development Group (PIDG) company, the Emerging Africa Infrastructure Fund (EAIF) invested XOF* 8.3 billion (cUS$15 million) in a local currency capital market bond issue by Senegal’s Port Autonome de Dakar (PAD), the owner of the Port of Dakar. A view of a section of Windhoek, the capital city of Namibia. ... examining milestones in Kenya’s transport infrastructure development in the last decade and determining whether planned transport infrastructure development projects in Kenya would enhance regional integration. Why does infrastructure development matter right now? In 2019/20 an additional allocation of R120 million, approved through the Budget Facility for Infrastructure (BFI), will help fund student housing programmes at the Nelson Mandela University, Sefako Makgatho Health Sciences University and the Vaal University of … As part of the Futuregrowth credit process, the initial pre-screening is typically the point at which we decide whether or not to proceed to doing a deep due diligence on a transaction. The benefit of spreading risk through portfolio diversification means that the impact of any such default or debt restructure should not be as adverse as it would have been if the exposures in the fund were more concentrated. Source: http://www.statssa.gov.za/?p=12200,  “Infrastructure act will go a long way to realising Cyril Ramaphosa's goals — if only he would use it” – published on 4 March 2019. Africa in 2019 Outlook | Panel discussion: Private Capital as a Force for Development in Africa Productive infrastructure is vital for development to take place in Africa, however, access to funding continues to be a significant issue facing multiple economies across the continent. Measurable social returns have included the provision of affordable housing in urban areas, the supply of renewable energy, access to finance for small enterprises, improved transport infrastructure, healthcare and shopping facilities in rural areas, development of farmland and the creation of jobs in rural areas, and many more. As the African continent kicked off the PIDA-2019 week, the continent has been also urged to augment the investments in infrastructure development in Africa to achieve major continental development aspirations. And importantly, we seek to generate this social return while also ensuring that our clients earn risk-adjusted commercial returns. The African Continental Free Trade Area is a landmark achievement, in the context of the continent’s long and rich history, in fostering regional integration to unify the continent. While the increase in financial commitments in 2018 is very welcome, the report also serves to highlight the size of Africa’s infrastructure financing gap – one of the key issues addressed during the forum,” Salawou said. Africa in Focus African economies, digitalization, and fragility: Insights from the Spring Meetings Landry Signé Thursday, April 18, 2019 How Africa Can Self-Finance its Economic Recovery, Uganda: African Development Fund Approves $71.5 Million in Loans for Road Upgrading Project, Building an EU-Africa Partnership of Equals, Russia Digs into Somaliland-Somalia Feud as Envoy Calls for Resumption of Talks, Development Evaluation Week: African Development Bank Marks 40 years of Evaluating Progress as Experts Mull SDGs and COVID-19, President Museveni to officially open the Agric show tomorrow, Africa on track to hit $2.1 trillion in consumer spending by 2025. Investing in township/rural centres vs urban malls/ MORE, Key decision point for Land Bank and its shareholder/ MORE, https://www.businesslive.co.za/bd/opinion/2019-03-04-infrastructure-act-will-go-a-long-way-to-realising-cyril-ramaphosas-goals--if-only-he-would-use-it/, https://mg.co.za/article/2018-09-21-infrastructure-at-the-heart-of-ramaphosas-plan-to-boost-the-economy, Futuregrowth partners with 27 Boxes on its developmental journey, Risky business? The event attracted key global companies, financial players, and public officials who addressed the continent’s critical infrastructure investment gaps. Africa has often seen constrained investment into its infrastructure because of the lack of a benchmark. Have our investment decisions actually yielded returns? Investing in infrastructure development benefits the country’s overall economy and generates social returns that can be quite meaningful and tangible. Source: https://mg.co.za/article/2018-09-21-infrastructure-at-the-heart-of-ramaphosas-plan-to-boost-the-economy, Futuregrowth partners with 27 Boxes on its developmental journey/ MORE, Risky business? AfDB Recruits Infrastructure Investment Officer in June 2019 AfDB returning applicants expressions of interest and how to get a job at African Development This, along with a 65% and 33% increase in commitments over the previous 3-year average by China and African Governments respectively, and the role of other multilateral organisations resulted in the 24% increase recorded in infrastructure financing for 2018. The Infrastructure Consortium for Africa (ICA) has announced a 24% leap in infrastructure financing in Africa in 2018, surpassing $100 billion for the first time, but significant financing gaps remain. The Futuregrowth Infrastructure & Development Bond Fund has a commendable performance track record and over the long term has outperformed its benchmark, the All Bond Index. Yet commentators are concerned by the lack of private sector activity within the area. According to Lina Cao, the Huawei Uganda Public Relations Manager the company shall carry out the program this year through online/e-learning platforms. Infrastructure funding is largely provided by South Africa’s national government. Over the past few years, there have been some notable defaults and debt restructures in both the South African and global markets, which is testament to the fact that creditors do in fact default and lenders need to negotiate meaningful protections to avoid losing capital in a default scenario. How mega infrastructure projects in Africa, Asia and Latin America are reshaping development October 31, 2019 8.06am EDT Seth Schindler , University of Manchester , … It was prepared under the supervision of Damoni Kitabire, Country Manager for Zimbabwe Office, supported by Kararach, Auma George, Lead Economist Southern Africa Region. In his 2019 State of the Nation Address, President Cyril Ramaphosa noted that: “Government has committed to contribute R100 billion into the Infrastructure Fund over a 10-year period and use this to leverage financing from the private sector and development finance institutions.” And with our country’s ailing economy, it is important - now more than ever - for the public and private sector to work together on addressing the issues that are holding back our economy. Recent figures released revealed that the South African economy contracted by 3.2% in the first quarter of 2019 relative to the first quarter of 2018, with the agriculture, mining and manufacturing industries showing the most significant decline. Infrastructure Africa will connect industry stakeholders, foster dialogue, provide leading-edge information, promote investment and expansion, as well as facilitate business development around Africa’s growth and infrastructure needs. Huawei, a leading global ICT solutions provider, has announced the 2020 edition Seeds for the Future Program known as the “Sky Seeds for the Future” despite the Covid-19 pandemic. Insight on Africa 2019 11: 2, 200-218 Download Citation. InfraCo Africa is part of the Private Infrastructure Development Group (PIDG): it is managed as a private company although funded by governments in the UK , the Netherlands and Switzerland . The International Monetary Fund (IMF) and African Development Bank (AfDB) have both predicted that Africa's overall growth will improve in 2019 … (Photo by: Education Images/Universal Images Group via Getty Images) Namibia on Friday launched the Infrastructure Development and Investment Fund aimed at mobilizing financial resources for infrastructure for a range of sectors in the country. Liesl Frankson | Jan 9, 2019 | News | 0 comments. The African Economic Outlook 2018 argues that the positive impact of infrastructure on economic growth and inclusive social development has been well documented by researchers in … Improved economic growth across Africa has been broad, with variation across economies and regions. 1.19 Net official development assistance to Africa from all donors, by country group, 2005–16 18 1.20 Average annual official development assistance to Africa, by region, 2005–10 and 2011–16 18 1.21 Gross government debt–to-GDP ratio in Africa, 2008–17 19 Why does infrastructure development matter right now? Zimbabwe Infrastructure Report 2019 ACKNOWLEDGEMENTS This Infrastructure Flagship Report Update was initiated at the request of the Government of Zimbabwe. In addition, new needs are arising from rapid urbanisation (50% of Africans are expected to reside in urban areas by 2035), a growing population (doubling from 1.2 billion in 2019to 2.5 billion by 2050) and economic growth, as well as the need to make infrastructure resilient to … Investment analysis should – whether from a debt or equity perspective - focus on both quantitative and qualitative factors, where the analyst’s responsibility involves identifying the risks that could lead to a loss in the value of the capital invested. The Africa Investment Forum took place from 11 to 13 November 2019 in Johannesburg, South Africa, and offered a platform for sourcing funding for bankable African projects, brokering infrastructure deals and providing innovative financial solutions. Through this and a variety of our other client funds, we, as fiduciary asset managers, are attempting to address the country’s infrastructure development needs by investing in businesses that operate in the following sectors, amongst others: As previously stated, the pace and magnitude of infrastructure development is a key contributor to a country’s economic growth prospects. Since its establishment in 2004, InfraCo Africa has developed thirteen projects through to Financial Close. Phone: +256 414 531345 +256 752 366881 Email: [email protected] [email protected]. Yet according to the 2019 African Development Bank Report , $130 – $170 billion per year in investment is needed to close Africa’s infrastructure gap. Connect with infrastructure professionals at Infrastructure Africa, gain access to leading-edge innovation and knowledge, access infrastructure project … Collectively, the countries of Africa would need to spend $130-170 billion per year to meet their infrastructure needs, but, according to the African Development … By African News Agency Oct 4, 2018. And because we are predominantly debt providers, we aim to protect our clients’ capital against the downside risk on the transactions that we participate in. Infrastructure for the Next Decade – Positioning Africa to deliver on Agenda 2063 and economic integration through multi- sectoral approaches to infrastructure development. Essentially, what is of utmost importance is understanding what could potentially cause these businesses to go under. The government has courted foreign direct investment to lure investors into areas that need infrastructure, and foreign companies often build, own an… Among the key findings of the report was an increase in financing commitments across all sectors, with a notable increase in the energy sector, which attracted financing commitments worth $43.8 billion, an all-time high and a 67% increase on the 2015-2017 average.