Unlocking international investment opportunities in Africa
Welcome to the inaugural edition of Africa Focus. As a continent, Africa is projected by the IMF to be the world's second-fastest growing region from 2017 to 2020. In 2016, the McKinsey Global Institute forecast that business spending in Africa is expected to grow from US$2.6 trillion to US$3.5 trillion by 2025. Our intent with this publication is to contribute in a meaningful way to the debate on how to ignite economic development in Africa and to help fund the projected growth. In this edition, we focus particularly on funding Africa's infrastructure deficit.
In "Bridging the gap", we explore the range of funding sources used to finance infrastructure in Africa and some new options that are emerging. "Private equity in Africa: Emerging trends" looks at the increasing interest being shown by private equity houses in African infrastructure projects. "Anticipated trends in project finance" examines the implications for project finance in South Africa particularly following the debt rating downgrade from investment to speculative. "Arbitration in Africa: Managing risk in a growing market" explores arbitration as a mechanism for resolving disputes. "Project bonds in the OHADA region" describes how project bonds, which are commonly used to finance infrastructure in other parts of the world, have significant potential in Africa. It examines the conditions that would need to exist in the OHADA countries specifically for project bonds to be viable in those markets. Finally, "Sub-Saharan African power projects" examines the challenges involved in state support for project finance, especially in the light of IMF requirements.
We hope that you find Africa Focus interesting and that it challenges your thinking in a positive and constructive way. Bridging the infrastructure gap is crucial to Africa achieving its objectives for sustainable economic growth and the well-being of its people. We welcome any feedback you may have on this publication.
Partner, White & Case, London
Africa Interest Group Leader