AF AFRIC RICA A IN INVES VESTMENT TMENT FORUM ORUM Africas - - PowerPoint PPT Presentation

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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


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SLIDE 1

AF AFRIC RICA A IN INVES VESTMENT TMENT FORUM ORUM

Africa’s Investment Market Place

June e 2018

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SLIDE 2

Africa’s Development Landscape

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

  • gress towar

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.

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SLIDE 3

Wh Wher ere e is is the e Capit pital? al?

AIF is a leveraging ing platf tfor

  • rm

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

  • n by

2030 2030

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SLIDE 4

Why hasn’t this happened?

3

  • Poor preparation and packaging of

project proposals

  • Limited availabilty of finance for project

preparation

Dearth arth of Bankab nkable le proj

  • ject

ects

  • Adverse government actions and

unpredictability

  • Cumbersome business regulations

Business siness & Regul ulator atory y Envi vironm ronment ent

  • Limited information on African markets
  • Data paucity

Info form rmat ation

  • n Asymmetry

mmetry

  • Negative perception of investment risk
  • Limited availability of tools for credit

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

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SLIDE 5

Afric ica a Inve vestm tment ent Forum rum (AIF) F) – Str Strat ategi egic c Intent ent

SPECIFIC IC OBJECTIVES TIVES

Advance projects to Bankable stage Capital raising Accelerate financial closure of deals

Africa’s Investment Market et Place

  • Visibility
  • Deal screening
  • Funding - Grants
  • Process

harmonization

  • Regulatory reforms

and consistency

  • Advocacy efforts for

institutional building

Policy y Envir iron

  • nmen

ent

  • Credit

enhancement

  • Co-guarantee

Platform

Projec ject Bankabil bility ity Invest stment ment Promotion tion

  • Partner

engagement

  • Market

Intelligence

Projec ject Preparat aration ion Pipeline line Develop lopmen ent

WORKSTR TREAMS AMS

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SLIDE 6

AIF

A) Deal onboarding

  • Digital platforms e.g Source &

Convergence, ConnectAmerica B) Deal screening & filtering

  • Deal profile: private sector

centric, demonstration effect, scalable etc)

  • Deal types (Elephants, Zebras,

Cheetahs, Turtles) C) Improving deal quality at entry

  • Leveraging existing and new

Instruments

  • Mapping potential deal partners

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

  • Roadshows
  • Investor conference calls

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

Wh What t is is the e AIF?

Africa’s Investment Market et Place

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SLIDE 7

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

AIF F PROJE OJECT CT PIPELINE ELINE

Africa’s Investment Market et Place

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SLIDE 8

7

V

Assist MDBs/DFIs in achieving deal closure through co-financing and syndication in the marketplace

V

Contribute to closing Africa’s investment gap

V

Leveraging MDBs/DFIs comparative advantage (as key conveners and honest brokers) to further consolidate their trusted relationships and brand equities

V

Effective tracking of deals to follow through on transaction delivery

Wh What t succ cces ess s wil ill l lo look k li like ke for the e AIF

Africa’s Investment Market et Place

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SLIDE 9

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