Financing Infrastructure in Africa : How the Region Can Attract More Project Finance

Financing Infrastructure in Africa : How the Region Can Attract More Project Finance

Sub-Saharan Africa receives only a small share of private investment in infrastructure. One reason for this is its difficulties in getting project finance - difficulties that stem from the low creditworthiness of most African countries, the limits of local financial markets, and the risk profiles typical of infrastructure projects. Whether the region can attract more private foreign currency funding for infrastructure will depend in part on the ability to reduce foreign exchange risks. But in some countries local currency sources, especially local capital markets, also offer good potential.

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Bibliographic Details
Main Authors: Sheppard, Robert, von Klaudy, Stephan, Kumar, Geeta
Language:English
Published: World Bank, Washington, DC 2006-09
Subjects:AFFORDABLE PRICE, BALANCE SHEETS, BANKS, BOND FINANCING, BOND ISSUES, BONDS, CAPITAL MARKETS, COMMERCIAL BANKS, CONCESSION, CONCESSIONS, CONTRACTUAL SAVINGS, CORPORATION, CREDIT RATING, CREDIT RATINGS, CREDITWORTHINESS, DEBT, DEBT RATINGS, ECONOMIC DEVELOPMENT, ECONOMICS, ELECTRICITY DISTRIBUTION, EQUITY INVESTORS, EXCHANGE RATE VOLATILITY, EXCHANGE RATES, FINANCE COMPANY, FINANCIAL CRISES, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL MARKETS, FINANCIAL SECTOR REFORM, FINANCING OF INFRASTRUCTURE PROJECTS, FOREIGN CURRENCY DEBT, FOREIGN EXCHANGE, FOREIGN FINANCING, FOREIGN LENDERS, GOVERNMENT SECURITIES, INFRASTRUCTURE ECONOMICS, INSURANCE, INSURANCE COMPANIES, INTEREST RATE SWAPS, INTERNATIONAL FINANCE, INTERNATIONAL MARKETS, INVESTMENT FUNDS, INVESTMENT IN INFRASTRUCTURE PROJECTS, LEASE CONTRACTS, LENDERS, LOCAL CAPITAL MARKETS, NONGOVERNMENTAL ORGANIZATIONS, PENSION FUNDS, PORTS, POWER, POWER DISTRIBUTION, PRIVATE CAPITAL, PRIVATE FINANCE, PRIVATE INFRASTRUCTURE, PRIVATE INFRASTRUCTURE INVESTMENT, PRIVATE INVESTMENT, PRIVATE INVESTMENT IN INFRASTRUCTURE, PRIVATE INVESTORS, PRIVATIZATION, PROJECT SPONSORS, PUBLIC-PRIVATE PARTNERSHIPS, RATING AGENCIES, REGULATORY SYSTEMS, RISK MITIGATION, ROADS, SAVINGS, SECURITIES, SPONSORS, SUB-SAHARAN AFRICA, TARIFF ADJUSTMENTS, TARIFF REGULATION, TECHNICAL ASSISTANCE, TERM FINANCE, TOLL, TOLL ROADS,
Online Access:http://documents.worldbank.org/curated/en/2006/09/7091083/financing-infrastructure-africa-region-can-attract-more-project-finance
https://hdl.handle.net/10986/10724
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Summary:Sub-Saharan Africa receives only a small share of private investment in infrastructure. One reason for this is its difficulties in getting project finance - difficulties that stem from the low creditworthiness of most African countries, the limits of local financial markets, and the risk profiles typical of infrastructure projects. Whether the region can attract more private foreign currency funding for infrastructure will depend in part on the ability to reduce foreign exchange risks. But in some countries local currency sources, especially local capital markets, also offer good potential.

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