IFC report examines investment opportunities in Africa
Entitled “New Horizons in African Finance: Reducing Risk and Mobilizing Financing on a New Scale," the report found that commercial options are numerous due to a change in consumption patterns, increase in incomes, age and size of the population and the high speed of urbanization and increase in Internet connectivity.
The report suggests that public-private relationships and local capital markets are some ways that risk can be mitigated and investors can increase their chances of successful endeavors.
Jingdong Hua, IFC’s vice president and treasurer, spoke on the report and its implications.
“We need to learn from recent projects that are bringing together development finance institutions with private commercial banks and other financiers, along with public and donor support,” Hua said.
While Africa has many strong sectors and is capable of using $90 billion in infrastructure expenses annually, there is only about $45 billion being put into investments at this time.
Innovation and structure were also discussed at the forum regarding risk mitigation.