AF AFRIC RICA A IN INVES VESTMENT TMENT FORUM ORUM
Africa’s Investment Market Place
June e 2018
AF AFRIC RICA A IN INVES VESTMENT TMENT FORUM ORUM Africas - - PowerPoint PPT Presentation
AF AFRIC RICA A IN INVES VESTMENT TMENT FORUM ORUM Africas Investment Market Place June e 2018 Africas Development Landscape Africas Investment Market et Place Averag erage e annually ally $65 90 billion Light up and
June e 2018
At the same time, Africa’s fina nanci ncing ng gap continues to expand
This gap cannot be addressed by MDBs and Governments only. It requires broad based partne nersh ships ps and colle lecti ctive e effort with the private sector to leverage capital l at scale.
The e High 5s will ll acceler lerat ate e progress
ards s the SDGs s According to a UN report, the High 5s will contribute to achieving almost 90% of the SDGs in Africa.
Africa’s Investment Market et Place
Light up and power Africa Feed Africa Industrialize Africa Integrate Africa Improve the quality of life TOTA TAL $65–90 billion $32–40 billion $40 billion $10 billion
$5.5 billion $153–186 billio lion
Averag erage e annually ally
Approx. $170 billion per annum The e globa bal l develo elopme ment t agen enda da is ambi bitio ious The international community has asked the MDBs to scale up their operations and go from “billions to trillions” to help the planet achieve the SDGs.
The MDBs/DFIs are maximizing their current resources; however, constraints imposed by prudential ratios will limit their lending capacity.
AIF is a leveraging ing platf tfor
m that will ll tilt the balance lance of capital ital towards Africa’s critical sectors to achieve the SDGs, High 5s and d Agen enda da 2063
Africa’s Investment Market et Place
USD 84.9 9 trill llio ion n in Global Assets sets Und nder er Mana nageme gement nt (AUM) UM) and projected to doube to USD 145 trill llion ion by 2025
Net t banking ing assets of circa USD 800 billion lion in Sub- Saharan Africa (SSA) alone.
USD 7 trill llion ion managed through 94 sovereign wealth funds in 60 countiries
AIF AIF AIF AIF
USD 500 500– 550 550 bill llion ion in combined net assets from Africa ican n pens nsion ion fund nds and sovereig eign n wealt lth fund nds & projected jected to reach ch USD1 1 trill llion
2030 2030
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project proposals
preparation
Dearth arth of Bankab nkable le proj
ects
unpredictability
Business siness & Regul ulator atory y Envi vironm ronment ent
Info form rmat ation
mmetry
enhancement and risk coverage
Invest vestme ment nt Risk sk
Africa’s Investment Market Place
Africa ica strug ruggles les to attr tract act signif ific icant ant capit ital al
SPECIFIC IC OBJECTIVES TIVES
Advance projects to Bankable stage Capital raising Accelerate financial closure of deals
Africa’s Investment Market et Place
harmonization
and consistency
institutional building
Policy y Envir iron
ent
enhancement
Platform
Projec ject Bankabil bility ity Invest stment ment Promotion tion
engagement
Intelligence
Projec ject Preparat aration ion Pipeline line Develop lopmen ent
WORKSTR TREAMS AMS
AIF
A) Deal onboarding
Convergence, ConnectAmerica B) Deal screening & filtering
centric, demonstration effect, scalable etc)
Cheetahs, Turtles) C) Improving deal quality at entry
Instruments
The Market Place
Totally transactional
The Platform
Connecting investors, other market players and policy makers
An enabling mechanism for MDBs/DFIs to do more with less
5 Efforts that culminate into the success of the market-days
AIF AIF
The Market-Days
A) Investment promotion
B) Match-making investors and transactions C) Partner engagement & crowding-in.
AIF
Sessions: sions: A) Speed-Dating B) In the Board Room C) Sharing success stories
Africa’s Investment Market et Place
Agriculture 10% Energy 71% Infrastructure 8% Hospitality & Tourism 4% Industrial & Trade 6% Urban Development & Real Estate 0% Social - Education & Health 1%
Sector Distribution by Ticket Size (USD Mln)
Agriculture 31% Energy 35% Infrastructure 14% Hospitality & Tourism 10% Industrial & Trade 5% Urban Development & Real Estate 2% Social - Education & Health 3%
Sector Distribution by No Of Deals
Agriculture Energy Infrastructure Hospitality & Tourism Industrial & Trade Urban Development & Real Estate Social - Education & Health 6
Africa’s Investment Market et Place
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Assist MDBs/DFIs in achieving deal closure through co-financing and syndication in the marketplace
Contribute to closing Africa’s investment gap
Leveraging MDBs/DFIs comparative advantage (as key conveners and honest brokers) to further consolidate their trusted relationships and brand equities
Effective tracking of deals to follow through on transaction delivery
Africa’s Investment Market et Place
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