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. The event attracted key global companies, financial players, and public officials who addressed the continent’s critical infrastructure investment gaps. This 3.2% decline is the largest drop in economic activity since the first quarter of 2009 (where a contraction of 6.1% was recorded), while the entire world economy was reeling from the effects of the global financial crisis. Yet according to the 2019 African Development Bank Report , $130 – $170 billion per year in investment is needed to close Africa’s infrastructure gap. 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. Mike Salawou, ICA Coordinator, and Manager of Infrastructure Partnerships, at the African Development Bank, commented: “Over the years the Infrastructure Financing Trends in Africa report has become an important document for presenting, in a consistent manner, how funding is being mobilised to develop the continent’s infrastructure. Have our investment decisions actually yielded returns? 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 … understanding the competitive environment and industry in which the business operates. Even with the significant increase in commitments in 2018, there remains a total financing gap of $52 billion to $92 billion per year. Parastatal companies also undertake infrastructure development in some sectors, while other initiatives include the government’s Expanded Public Works Programme, and public-private partnerships. ... 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. 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 … 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. 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? Developmental investing provides investors with both commercial returns and a tangible social and developmental impact. “The report’s publication during the Africa Investment Forum is extremely timely. 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. Infrastructure funding is largely provided by South Africa’s national government. 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. Africa has often seen constrained investment into its infrastructure because of the lack of a benchmark. [1] “Economy stumbles in the first quarter” – published on 4 June 2019. 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. How mega infrastructure projects in Africa, Asia and Latin America are reshaping development October 31, 2019 8.06am EDT Seth Schindler , University of Manchester , … 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 And importantly, we seek to generate this social return while also ensuring that our clients earn risk-adjusted commercial returns. A comprehensive guide on infrastructure development. AfDB Recruits Infrastructure Investment Officer in June 2019 AfDB returning applicants expressions of interest and how to get a job at African Development 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. By African News Agency Oct 4, 2018. 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. Yearly estimates of Africa’s financing requirements range from $130 billion to $170 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. 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. The ICT sector also saw record commitments in 2018 of $7.1 billion, mostly from the private sector. 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. 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. 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 . A view of a section of Windhoek, the capital city of Namibia. At the end of April 2019, the fund was exposed to a variety of sectors with almost 50% invested in transactions in the infrastructure development and social services space. ‐3- 1. The Africa Infrastructure Development Index (AIDI) is produced by the African Development Bank. 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. 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. Phone: +256 414 531345 +256 752 366881 Email: [email protected] [email protected]. A collection of Futuregrowth thought leadership pieces, media articles and interviews. 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. It was prepared under the supervision of Damoni Kitabire, Country Manager for Zimbabwe Office, supported by Kararach, Auma George, Lead Economist Southern Africa Region. This 3.2% decline is the largest drop in economic activity since the first quarter of 2009 (where … 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 … Why does infrastructure development matter right now? 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. Connect with infrastructure professionals at Infrastructure Africa, gain access to leading-edge innovation and knowledge, access infrastructure project … 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. Improved economic growth across Africa has been broad, with variation across economies and regions. This was one of the key outcomes at the 2019 SAP Quality Awards, which were held in Johannesburg and which recognized some of Africa’s most innovative public and private sector SAP […], Plot 722 Namuli Road, Bukoto Kampala, Uganda. 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. With initiatives like the African Development Bank’s Programme for Infrastructure Development in Africa (PIDA), the first steps have been made. Panellists Dr T. Nyirenda-Jere, Dr B. Ben Yaghlane, Dr I. Urua, Mr C. Kirigua and Mr P. Guislain, addressed key messages highlighted in this year’s report, which includes, the need to increase both public and private sector financing, strengthen governance and improve the quality of infrastructure services. 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. 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. 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. 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. Indices and benchmarks play a critical role in investment management which is why, in the interest of promoting increased investment into African infrastructure… 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. Investing in township/rural centres vs urban malls, Key decision point for Land Bank and its shareholder. Zimbabwe Infrastructure Report 2019 ACKNOWLEDGEMENTS This Infrastructure Flagship Report Update was initiated at the request of the Government of Zimbabwe. 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. Our flagship Futuregrowth Infrastructure & Development Bond Fund, which aims to make investments that facilitate infrastructural, social, environmental and economic development in South Africa, has been in existence since January 1995. And this brings the importance of investments that further develop and improve the country’s infrastructure assets to the fore. According to Lina Cao, the Huawei Uganda Public Relations Manager the company shall carry out the program this year through online/e-learning platforms. Investing in infrastructure development benefits the country’s overall economy and generates social returns that can be quite meaningful and tangible. Liesl Frankson | Jan 9, 2019 | News | 0 comments. In South Africa, the primary development focus is around the provision of basic services - and infrastructure development focuses on sectors such as power, healthcare, transport, education, small, medium and micro-sized enterprise development, and housing, to name a few. 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. 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. 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. Source: http://www.statssa.gov.za/?p=12200, [2] “Infrastructure act will go a long way to realising Cyril Ramaphosa's goals — if only he would use it” – published on 4 March 2019. However this situation is set to change with the launch of the continent’s first infrastructure performance index. The International Monetary Fund (IMF) and African Development Bank (AfDB) have both predicted that Africa's overall growth will improve in 2019 … Infrastructure developmental investing is a sub-sector of developmental investing, and can also be called impact investing. Since its establishment in 2004, InfraCo Africa has developed thirteen projects through to Financial Close. 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. 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? Of the continent ’ s overall economy and generates social returns that can quite. Partners with 27 Boxes on its developmental journey/ MORE, Risky business Digital Transactions in Uganda billion... 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