Africa investor (Ai), the international investment and communications group, and Africa50, the pan-African infrastructure investment platform, co-hosted the fourth Ai CEO infrastructure project Developers Summit on June 18 in Mauritius.
The
Summit was opened by Paramasivum Pillay Vyapoory, Acting President of
Mauritius, and closed by Aziz Rebbah, the Minister of Energy, Mines and
Development of Morocco, who both emphasized the need for good
governance, transparency and committed political leadership to speed up
the process of approving and implementing infrastructure projects.
Summit was opened by Paramasivum Pillay Vyapoory, Acting President of
Mauritius, and closed by Aziz Rebbah, the Minister of Energy, Mines and
Development of Morocco, who both emphasized the need for good
governance, transparency and committed political leadership to speed up
the process of approving and implementing infrastructure projects.
Ai
CEO Hubert Danso stressed that, “We need effective public-private
collaboration to prioritize reaching rapid financial close on projects.
This will demonstrate to private capital that early stage commercial
project development in Africa is an attractive investment opportunity.”
CEO Hubert Danso stressed that, “We need effective public-private
collaboration to prioritize reaching rapid financial close on projects.
This will demonstrate to private capital that early stage commercial
project development in Africa is an attractive investment opportunity.”
This
theme was reinforced throughout the day at panels featuring private
sector CEOs, institutional investors, and Development Finance
Institution (DFI) leaders. Under the central theme of Putting Financial Close First,
they discussed the findings of the 2017 African Project Developers
Forum Benchmarking Survey and shared strategies for catalyzing private
capital for infrastructure, especially in the energy sector.
theme was reinforced throughout the day at panels featuring private
sector CEOs, institutional investors, and Development Finance
Institution (DFI) leaders. Under the central theme of Putting Financial Close First,
they discussed the findings of the 2017 African Project Developers
Forum Benchmarking Survey and shared strategies for catalyzing private
capital for infrastructure, especially in the energy sector.
Introducing
the second half of the program, Africa50 CEO Alain Ebobisse said that,
“The game changer will be when enough public and private sector
stakeholders realize that the opportunity cost of delayed project
implementation is too high. We must reach a consensus that it is in
everyone’s interest to bring projects to financial close and operations
more quickly and at a larger scale.”
the second half of the program, Africa50 CEO Alain Ebobisse said that,
“The game changer will be when enough public and private sector
stakeholders realize that the opportunity cost of delayed project
implementation is too high. We must reach a consensus that it is in
everyone’s interest to bring projects to financial close and operations
more quickly and at a larger scale.”
This was echoed by African
Development Bank Vice President for Power, Energy, Climate and Green
Growth, Amadou Hott, who emphasized the Bank’s growing focus on the
private sector and rapid project implementation.
Development Bank Vice President for Power, Energy, Climate and Green
Growth, Amadou Hott, who emphasized the Bank’s growing focus on the
private sector and rapid project implementation.
The consensus
among the day’s speakers on speeding up infrastructure development was
that there is no shortage of capital available for “bankable” projects,
but that there are still too few. To build up the project pipeline, all
stakeholders must to do their part.
among the day’s speakers on speeding up infrastructure development was
that there is no shortage of capital available for “bankable” projects,
but that there are still too few. To build up the project pipeline, all
stakeholders must to do their part.
Attendees noted that
governments play a key role. They must assure leadership, transparency,
stable institutions, and a positive business and regulatory environment.
Meanwhile, developers must be technically and financial strong, and
DFIs must provide risk mitigation and act as conveners.
governments play a key role. They must assure leadership, transparency,
stable institutions, and a positive business and regulatory environment.
Meanwhile, developers must be technically and financial strong, and
DFIs must provide risk mitigation and act as conveners.
If these
conditions are met, the private sector can provide the finance and
expertise to get projects off the ground and become financially
sustainable, bringing an entrepreneurial, results-driven approach to
infrastructure.
conditions are met, the private sector can provide the finance and
expertise to get projects off the ground and become financially
sustainable, bringing an entrepreneurial, results-driven approach to
infrastructure.
To be successful, infrastructure project
developers need to secure the buy-in of governments by proving that they
have the requisite experience and expertise and by offering competitive
project terms. They must also understand the local environment, keeping
aware of internal dynamics, working with local partners, and setting
realistic timetables.
developers need to secure the buy-in of governments by proving that they
have the requisite experience and expertise and by offering competitive
project terms. They must also understand the local environment, keeping
aware of internal dynamics, working with local partners, and setting
realistic timetables.
DFIs can help by providing financing and
risk mitigation, which can lower costs and speed up implementation. They
can also act as conveners, problem solvers, and neutral party, working
with governments, developers, and other partners to structure
investments.
risk mitigation, which can lower costs and speed up implementation. They
can also act as conveners, problem solvers, and neutral party, working
with governments, developers, and other partners to structure
investments.
However, it was acknowledged that little of this
can work without the proper public sector enabling environment.
Governments must show the political will to fast track projects. They
must act with transparency and create stable institutions and a positive
business and regulatory framework.
can work without the proper public sector enabling environment.
Governments must show the political will to fast track projects. They
must act with transparency and create stable institutions and a positive
business and regulatory framework.
As highlighted by the Acting
Mauritian President and the Moroccan Minister, countries that have been
successful, including their own, have master plans for infrastructure
that they have implemented consistently over the long term, coupled with
transparent, fair prices that reflect risks at every stage of a
project. They have also shown strong commitment to private sector
participation, providing sovereign guarantees when needed, and have
proven adept at structuring and negotiating PPPs.
Mauritian President and the Moroccan Minister, countries that have been
successful, including their own, have master plans for infrastructure
that they have implemented consistently over the long term, coupled with
transparent, fair prices that reflect risks at every stage of a
project. They have also shown strong commitment to private sector
participation, providing sovereign guarantees when needed, and have
proven adept at structuring and negotiating PPPs.
Overall, this
year’s Summit helped cement the consensus that it is in everyone’s
interest to bring infrastructure projects to financial close and
operation as quickly as possible. Investors get a fair return, citizens
get services, and governments can showcase their positive enabling
environment to attract additional investors.
year’s Summit helped cement the consensus that it is in everyone’s
interest to bring infrastructure projects to financial close and
operation as quickly as possible. Investors get a fair return, citizens
get services, and governments can showcase their positive enabling
environment to attract additional investors.
