Even though governance and macroeconomic conditions have improved across Africa in recent years, the region’s share of global private infrastructure investment has remained small.
There is substantial demand for infrastructure assets throughout the African continent. Relative to more developed markets, returns on investment in infrastructure in Africa are actually attractive. Notwithstanding, there have been few successful infrastructure projects. One of the reasons for this has been the lack of project structuring expertise and available risk capital.
It was to fill this critical void that the founders of the Africa Finance Corporation (AFC) established the organization in 2007. The corporation brings a wealth of such project structuring experience and risk capital to the market. It is already bridging the infrastructure investment gap – even amidst tighter credit markets, as discerning global investors weigh their options and consider “safer” regions.