Filling the funding gap for infrastructure development in Africa will require new solutions and innovationAccelerating Africa’s development while building on the progress already made is a challenge for the continent’s governments and private sectors. So what are the catalysts and inhibitors to unlocking further growth and development? The private sector is the biggest potential driver of development, both in the short and long term, while the major inhibitor is access to sustainable funding.
About the author: Conny Konopi is an investment banking transactor at Rand Merchant Bank. Picture: SUPPLIED/RMB Africa has a friend in China. More than 35 African countries are engaging with China on infrastructure finance deals, according to the World Bank. Chinese president Xi Jinping mentioned at the Forum on China-Africa Cooperation in 2018 that China will invest $60bn in the next three years in Africa.
More corporates are exploring crowdfunding as this allows them to diversify their funding bases while gaining access to investors who take a longer view than most banks and bond investors. Africa’s young economies, large infrastructure needs and under-developed local capital pools, combined with a demographic dividend, make it a potential hotbed for innovation. However, the continent needs to find homegrown solutions to unlock its full potential.