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Public-private partnerships, sovereign wealth funds, special purpose vehicles and sovereign bonds targeting the diaspora are creative and diversified ways of raising funding for infrastructure development and avoiding the Angola model and extreme exposure to China. Africa’s ability to address its infrastructure deficit will be enhanced if these issues can be effectively addressed.

A funding shortage is one of the biggest challenges to the development of infrastructure in Africa. The African Development Bank (AfDB) has estimated that about $93-billion a year is required to close Africa’s infrastructure gap by 2025. This calls for creative and diversified ways to fund infrastructure.

China, with its ideology of “shared prosperity”, the mantra of the Forum on China-Africa Co-operation, has emerged as Africa’s dominant partner.
It is assisting with many aspects of infrastructure development, including by funding the AfDB’s programme for infrastructure development and other presidential initiatives.

China’s financial aid has a price

Although the financial assistance is welcome, it is not without problems and raises several concerns that need to be addressed. China’s lending patterns mirror the pursuit of “debt diplomacy” in Africa…..more

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