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. This paper provides a scorecard on infrastructure development in Sub-Saharan Africa over the past decades along four sectors (telecommunications, electric power, transportation, and water and sanitation) and three dimensions (quantity, quality, and access). 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 . [1] “Economy stumbles in the first quarter” – published on 4 June 2019. Africa has often seen constrained investment into its infrastructure because of the lack of a benchmark. Investing in infrastructure development benefits the country’s overall economy and generates social returns that can be quite meaningful and tangible. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';fnames[1]='FNAME';ftypes[1]='text';fnames[2]='LNAME';ftypes[2]='text';fnames[3]='ADDRESS';ftypes[3]='address';fnames[4]='PHONE';ftypes[4]='phone';fnames[5]='BIRTHDAY';ftypes[5]='birthday';}(jQuery));var $mcj = jQuery.noConflict(true); Huawei’s Seeds for the Future Program 2020 to go ahead online, Advanced technologies enhance Umeme supply chain, 19.4 million Ugandan Children vaccinated in Measles and Rubella campaign, Bleak future for Tanzania small tour operators as tax regime bites. 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. The AIDI serves a number of key objectives, principally: (i) to monitor and evaluate the status and progress of infrastructure development across the continent; (ii) to assist in resource allocation within the framework of ADF replenishments; and (iii) to contribute to policy dialogue within the Bank and between the Bank, RMCs and other 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. 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. A collection of Futuregrowth thought leadership pieces, media articles and interviews. understanding the competitive environment and industry in which the business operates. Launched on 12 November at the Africa Investment Forum, the ICA’s Infrastructure Financing Trends in Africa 2018 report shows that financing of infrastructure in Africa reached a new high of $100.8 billion in 2018, a jump of about a quarter on 2017 and 38% up on the 2015-2017 average. Indices and benchmarks play a critical role in investment management which is why, in the interest of promoting increased investment into African infrastructure… Yet commentators are concerned by the lack of private sector activity within the area. A view of a section of Windhoek, the capital city of Namibia. “The report’s publication during the Africa Investment Forum is extremely timely. 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. Recent figures released revealed that the South African economy contracted by 3.2% in the first quarter of 2019[1] relative to the first quarter of 2018, with the agriculture, mining and manufacturing industries showing the most significant decline. Phone: +256 414 531345 +256 752 366881 Email: [email protected] [email protected]. However this situation is set to change with the launch of the continent’s first infrastructure performance index. Infrastructure development in Africa can facilitate economic and social growth. 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The government has courted foreign direct investment to lure investors into areas that need infrastructure, and foreign companies often build, own an… How mega infrastructure projects in Africa, Asia and Latin America are reshaping development October 31, 2019 8.06am EDT Seth Schindler , University of Manchester , … AfDB Recruits Infrastructure Investment Officer in June 2019 AfDB returning applicants expressions of interest and how to get a job at African Development 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 … Infrastructure funding is largely provided by South Africa’s national government. Parastatal companies also undertake infrastructure development in some sectors, while other initiatives include the government’s Expanded Public Works Programme, and public-private partnerships. Infrastructure developmental investing is a sub-sector of developmental investing, and can also be called impact investing. According to Lina Cao, the Huawei Uganda Public Relations Manager the company shall carry out the program this year through online/e-learning platforms. This weak economic environment further adds to the societal challenges faced by many South Africans, particularly those with no access to essentials like clean running water, electricity, affordable healthcare or a good quality home. By African News Agency Oct 4, 2018. The bond raised over XOF60 billion (US$107million). 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? This years’ report shows the role ICA continues to play in institutional and policy reform as well as its consistent financial contribution within the infrastructure space. Africa in Focus African economies, digitalization, and fragility: Insights from the Spring Meetings Landry Signé Thursday, April 18, 2019 And while government continues to communicate its commitment to investing more in the country’s infrastructure backbone[2], it must be emphasised that the private sector also has a role to play in ensuring that the necessary capital is channelled into this extremely important area, which should drive the much-needed growth in the South African economy. More than 20 years into our country’s democracy, this task needs to be taken on by both the public and private sector in order for a meaningful change to happen. 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. 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. 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. While businesses that are in the infrastructure development space can be exposed to some quite specific risks, the key for us is that the fundamentals should still hold and the returns generated for our clients’ funds must be commensurate with the risk taken on. 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 Even with the significant increase in commitments in 2018, there remains a total financing gap of $52 billion to $92 billion per year. Essentially, what is of utmost importance is understanding what could potentially cause these businesses to go under. It was prepared under the supervision of Damoni Kitabire, Country Manager for Zimbabwe Office, supported by Kararach, Auma George, Lead Economist Southern Africa Region. 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. And this brings the importance of investments that further develop and improve the country’s infrastructure assets to the fore. As asset managers, we are tasked with responsibly deploying our clients’ capital while delivering on the developmental mandate and ensuring that our clients earn returns that are in line with the risks identified. 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. This 3.2% decline is the largest drop in economic activity since the first quarter of 2009 (where … Why does infrastructure development matter right now? The event attracted key global companies, financial players, and public officials who addressed the continent’s critical infrastructure investment gaps. Improved economic growth across Africa has been broad, with variation across economies and regions. Since its establishment in 2004, InfraCo Africa has developed thirteen projects through to Financial Close. Source: 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/, “Infrastructure at the heart of Ramaphosa’s plan to boost the economy” published on 21 September 2018. (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. African transport infrastructure insufficient for continental growth - Nzimande. Have our investment decisions actually yielded returns? 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 … 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. Cao encouraged universities in […], Serving 1.3 million customers in one of East Africa’s key economic hubs, Ugandan electricity distribution company, Umeme, plays a vital role in enabling the government’s Electricity Connections Policy that aims to increase electricity penetration rates. ... 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. South African President, Cyril Ramaphosa aims to improve the economy by attracting $100 billion in investments over five years, and some of this will come from projects in the mining sector. PIDA Week 2019 takes cognisance of the formation of the African Union Development Agency-NEPAD (AUDA-NEPAD), tasked among other things to coordinate and execute priority regional and continental development projects and to promote regional economic integration towards the accelerated realisation of Agenda 2063 – Africa’s vision and action plan. The role of the Infrastructure Consortium for Africa (ICA) is to help improve the lives and economic well-being of Africa’s people through encouraging, supporting and promoting increased investment in infrastructure in Africa. Connect with infrastructure professionals at Infrastructure Africa, gain access to leading-edge innovation and knowledge, access infrastructure project … Futuregrowth Infrastructure & Development Bond Fund performance. Zimbabwe Infrastructure Report 2019 ACKNOWLEDGEMENTS This Infrastructure Flagship Report Update was initiated at the request of the Government of Zimbabwe. 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. The Africa Infrastructure Development Index (AIDI) is produced by the African Development Bank. 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. PostBank & UnionPay International Unveil New Payment Card to Boost Digital Transactions in Uganda. Defining infrastructure development and understanding the impact that it can potentially deliver is perhaps the easier part, and the hard work comes in when one attempts to identify the appropriate partners to invest in, and which sectors to focus on. Venue, date and attendance 1.1 The Aviation Infrastructure for Africa Gap Analysis workshop was held from 19 to 21 March 2019 in Abuja, Nigeria. Funding to infrastructure development in Africa hits $100 billion 18th November 2019 18th November 2019 EABW Editor Comment(0) 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. A comprehensive guide on infrastructure development. The African Continental Free Trade Area will lead to the creation of a single continental market of more than 1.3 billion people, with a combined annual output of $2.2 trillion. 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