Transforming African Development : Partnerships and Risk Mitigation to Mobilize Private Investment on a New Scale
The role of the private sector is particularly significant inAfrica—the focus of this report. Africa’s population is expectedto increase to 1.7 billion in 2030. By 2050, the continent will be home to 2.4 billion people—a quarter of the world’s futu...
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| Format: | Working Paper |
| Language: | English en_US |
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International Finance Corporation, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/960551477562907960/Path-to-African-development-mobilizing-private-investment-in-a-new-scale-by-the-reduction-of-the-partnership-and-risk http://hdl.handle.net/10986/25388 |
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okr-10986-253882021-05-25T09:51:53Z Transforming African Development : Partnerships and Risk Mitigation to Mobilize Private Investment on a New Scale International Finance Corporation SDGs Sustainable Development Goals markets consumption economic outlook environment funding sources private finance public finance private-public partnerships The role of the private sector is particularly significant inAfrica—the focus of this report. Africa’s population is expectedto increase to 1.7 billion in 2030. By 2050, the continent will be home to 2.4 billion people—a quarter of the world’s future population. A growing and rapidly urbanizing Africa requires substantially more services and basic infrastructure, including power, ports, roads, and railways. According to the WorldBank Group, Africa’s unmet infrastructure investment needs are estimated at more than 45 billion dollars annually. Only a robust private sector can create the jobs and deliver higher standards of living to an increasingly young African population. In the poorest and most conflict-prone countries, private markets barely exist, slowing development.These markets must be built up and energized, work that willrequire new types of financial instruments that can attract private investment and mitigate risks for investors.This report offers a template for how we can move forward—by showing how investors, governments, local enterprises, donors,and individuals are working together to address investors’ riskconcerns and deliver more investment with positive impact. It allows governments to procureprivately funded solar power stations—quickly, transparently,and at the lowest tariffs possible. Private developers, fortheir part, benefit from an all-in-one package of advice, risk management, finance and insurance. So far, three countries are on board—Madagascar, Senegal and Zambia—and dozens of top-tier companies are competing forthe chance to build solar plants in markets they would otherwisenot know how to navigate. The program’s first auction, inZambia, resulted this year in the lowest-priced solar power todate in Africa, just six cents per kilowatt hour. In a countr ywhere only one fifth of the population has access to electricity,consumers will now have a new source of affordable, renewableenergy. IFC has a track record of fostering and sustaining privateenterprise in the most difficult environments.this report will encourage governments, donor partners, and the private sector to collaborate in new ways. 2016-11-18T20:00:51Z 2016-11-18T20:00:51Z 2016-08-01 Working Paper http://documents.worldbank.org/curated/en/960551477562907960/Path-to-African-development-mobilizing-private-investment-in-a-new-scale-by-the-reduction-of-the-partnership-and-risk http://hdl.handle.net/10986/25388 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ International Finance Corporation International Finance Corporation, Washington, DC Publications & Research Publications & Research :: Working Paper Africa Sub-Saharan Africa |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
SDGs Sustainable Development Goals markets consumption economic outlook environment funding sources private finance public finance private-public partnerships |
| spellingShingle |
SDGs Sustainable Development Goals markets consumption economic outlook environment funding sources private finance public finance private-public partnerships International Finance Corporation Transforming African Development : Partnerships and Risk Mitigation to Mobilize Private Investment on a New Scale |
| geographic_facet |
Africa Sub-Saharan Africa |
| description |
The role of the private sector is
particularly significant inAfrica—the focus of this report.
Africa’s population is expectedto increase to 1.7 billion in
2030. By 2050, the continent will be home to 2.4 billion
people—a quarter of the world’s future population. A growing
and rapidly urbanizing Africa requires substantially more
services and basic infrastructure, including power, ports,
roads, and railways. According to the WorldBank Group,
Africa’s unmet infrastructure investment needs are estimated
at more than 45 billion dollars annually. Only a robust
private sector can create the jobs and deliver higher
standards of living to an increasingly young African
population. In the poorest and most conflict-prone
countries, private markets barely exist, slowing
development.These markets must be built up and energized,
work that willrequire new types of financial instruments
that can attract private investment and mitigate risks for
investors.This report offers a template for how we can move
forward—by showing how investors, governments, local
enterprises, donors,and individuals are working together to
address investors’ riskconcerns and deliver more investment
with positive impact. It allows governments to
procureprivately funded solar power stations—quickly,
transparently,and at the lowest tariffs possible. Private
developers, fortheir part, benefit from an all-in-one
package of advice, risk management, finance and insurance.
So far, three countries are on board—Madagascar, Senegal and
Zambia—and dozens of top-tier companies are competing forthe
chance to build solar plants in markets they would
otherwisenot know how to navigate. The program’s first
auction, inZambia, resulted this year in the lowest-priced
solar power todate in Africa, just six cents per kilowatt
hour. In a countr ywhere only one fifth of the population
has access to electricity,consumers will now have a new
source of affordable, renewableenergy. IFC has a track
record of fostering and sustaining privateenterprise in the
most difficult environments.this report will encourage
governments, donor partners, and the private sector to
collaborate in new ways. |
| format |
Working Paper |
| author |
International Finance Corporation |
| author_facet |
International Finance Corporation |
| author_sort |
International Finance Corporation |
| title |
Transforming African Development : Partnerships and Risk Mitigation to Mobilize Private Investment on a New Scale |
| title_short |
Transforming African Development : Partnerships and Risk Mitigation to Mobilize Private Investment on a New Scale |
| title_full |
Transforming African Development : Partnerships and Risk Mitigation to Mobilize Private Investment on a New Scale |
| title_fullStr |
Transforming African Development : Partnerships and Risk Mitigation to Mobilize Private Investment on a New Scale |
| title_full_unstemmed |
Transforming African Development : Partnerships and Risk Mitigation to Mobilize Private Investment on a New Scale |
| title_sort |
transforming african development : partnerships and risk mitigation to mobilize private investment on a new scale |
| publisher |
International Finance Corporation, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/960551477562907960/Path-to-African-development-mobilizing-private-investment-in-a-new-scale-by-the-reduction-of-the-partnership-and-risk http://hdl.handle.net/10986/25388 |
| _version_ |
1764459050673635328 |