Economics edito at
and chai of the ond table
Ti d Logm
Vice-pesident fo nance, Afican Development Bank
Vice-pesident fo opeations, Afican Development Bank
Managing diecto fo fontie makets fnds, Standad Bank
Patne at vente capital m, Mais Capital
Vice-pesident fo banking, MediCapital Bank
Patne and co-head of infastcte, Actis
Head of poject nance, Afica, Standad Chateed Bank
Funding AFricAn inFrAstructure
Leadership series round table
The parlous state of infrastructure in Africa is one of the main reasons the continent has never achieved its immense potential.
’s roundtable attempts to nd out how this situation can be rectied and where the money will come from to fund it.
Cli Cobtt, coomic dito t
, opd t Ldip i od tbl b qotig ct pot b t aic Itct Cot Dig-otic tt od tt bd itct i 24 lctd aic coti ct tiol coomic got b to pct-g poit d dcd bi podc- tiit b 40%. T m od tt i od to big itct o t cotit p to tdd b t cici cold b gid, tggig $31b p dd to b pmpd i. Ti pomptd M Cobtt to t qtio: i itct i o citicl to t dlopmt o aic coomi, it b glctd o o log d ill t mo com om to pt ti igt? h d t pl t t t biggt obtcl to bildig d dig itct i aic.
Ade Adeola, head of poject nance, Afica, fo Standad Chateed Bank, said the big-gest obstacles wee affodability and nding eliable off-takes. “O analysis acoss the maket indicates vey clealy that thee is a mismatch between the need fo infastc-te and the ability to get a stong off-take to be able to sppot the financing of pojects.” Aloysis Od, vice-pesident of opeations at the Afican Development Bank (ADB), said access to nance was by fa the most impotant handicap to infastcte in Afica. “When we think of Afica, we think in tems of 53 conties in a $1100bn econ-omy, and if we had the ight amonts of money to fnd infastcte in this conti-nent, yo cold gow that $1100bn economy to $5000bn,” he said. M Cobett then asked Tobjon Caesa, a patne and co-head of infastcte at pivate eqity company Actis, what moe the banks cold do to help nance citical infa-stcte pojects. He said that pivate capi-tal shold play a mch bigge ole than it does today, bt then allded to M Adeola’s point that the poblem was nding eliable and cedit-wothy off-takes. “Longe-tem, yo need to have deeglation take away [ntageted] sbsidies and yo have to have a tanspaent secto with cost-eective ta-iffs,” he said. Nicolas Pitiot, a vice-pesident fo bank-ing at MediCapital Bank, the Eopean sb-sidiay of BMC of Moocco, said the key to impoving the state of Afican infastc-te was access to long-tem nancing: “The pivate secto has a hge contibtion to make bt, with the cedit cnch, a lot of instittions ae having difclties enanc-ing on vey long-tem matities.” M Pitiot also lamented the fact that in many Afican conties, the legal famewok eqied to pt sch pojects into action was not p to scatch. “If we want to see moe pblic- pivate patneships, the legal famewok has to be stengthened in these conties,” he said. Anothe difclty highlighted by M Pitiot was hman esoces, which he said,
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