A high perception of risk is one of the major challenges for infrastructure investment in African countries, and much focus is needed to “get things done” and move to another level of development for the perception of risk to fade.
Infrastructure needs in sub-Saharan Africa were estimated at $100-billion a year; however, despite robust private investment, a funding gap of more than $31-billion remained.
“African assets have been undervalued because Africa’s risk has been exaggerated. All we have to do is fight and mitigate the risk,” African Development Bank (AfDB) president Donald Kaberuka said.
“Instead of focusing on what is not working, why don’t we focus on how to make things work? We should spend more time showing things that are happening in Africa,” Kaberuka pointed out.
Africa Investor CEO and vice chairperson Hubert Danso suggested that the AfDB and the World Bank work with regulators to put in place incentives that “make it easier” for African pension and sovereign wealth funds to invest in domestic and regional infrastructure investment projects.
By: Natasha Odendaal