JOHANNESBURG, South Africa (PAMACC News) - Sponsors of development projects in Africa, borrowers, lenders, and public and private sector investors meet in South Africa to accelerate the continent’s investment opportunities in sectors not limited to energy, infrastructure, transport and utilities, industry, agriculture, ICT and Telecoms, water and sanitation and health and education.
According to a statement from the Africa Development Bank (AfDB), the forum targets a total pipeline of 230 projects worth over US$208 billion.
According to the bank, 28 boardroom sessions will curate, screen and ensure the projects are bankable and reach financial close. A total of 61 deals estimated at more than US$40 billion will feature in Boardroom Sessions, while another US$28 billion worth of deals will be showcased to investors at a marketplace Gallery Walk.
Victor Oladokun, director of communications for the bank that each year, Africa has a deficit in investment funding worth US$130-170 billion, “half of that represents an infrastructure financing gap which we are trying to reach.”
The Forum also includes a co-guarantee platform that will develop and deploy innovative instruments to de-risk private sector investments at scale, thus boosting investor confidence.
According to the AfDB President Dr. Akinwumi Adesina, the forum is a collective deal of the century for investment in and the development of Africa, focusing on advancing projects to bankable stages, raising capital and accelerating the financial closure of deals.
“I do not seek aid, I seek investment for Africa,” said Dr Akinwumi.
To facilitate this, global financial institutions such as Africa Finance Corporation (AFC), Development Bank of South Africa (DBSA), Africa 50, Afreximbank, European Investment Bank (EIB), Trade and Development Bank and the Islamic Development Bank, have come together to form solid strategic alliances around the new venture.
Ronnie Ntuli, the Executive Chairman for the Thelo Group described the forum as “a unique opportunity for Africans to partner with global capacity and the private sector. “It is an investor market…where all these partners converge to take advantage of tremendous opportunities,” he said.
South African Deputy Director of the National Treasury Vuyelwa Vumendlini said that the investment forum provides a continental complement to the country’s recent investment forum which successfully attracted more than US$14 billion in investments.
According to the AfDB, African businesses are rapidly growing in number and sophistication, presenting excellent investment opportunities with relatively high returns, but the challenge of positioning themselves for consideration in front of institutional investors and global corporate remains.
The forum, which takes place between 7 and 9 November, 2018 is hosted by the Government of South Africa, the AfDB and several multi-lateral development partners.
Discussions will focus on specific projects, sectors, investors, and themes. Others will have country or regional focus. Co-financing and collaborations between investors will also be a key focus area at this event.
The inaugural Africa Investment Forum will feature a session on Championing Investments− an investment conversation with African Heads of State to highlight concrete and transformative actions for a new business landscape in Africa, including collective efforts to facilitate private investments.