Development Finance Leaders Urge Private Sector Utilisation For African Infrastructure

The Africa Investment Forum (AIF) 2024 recently convened leaders from development finance institutions (DFIs), export credit agencies (ECAs), and insurers to strategise on scaling up infrastructure financing in Africa.

With the theme ‘Scaling up infrastructure financing through partnerships between DFIs, insurers, and export credit agencies,’ the high-level roundtable highlighted the importance of mobilising private capital to meet Africa’s development goals.

Yuichiro Akita, President of the Berne Union, lauded the AIF for generating $180 billion in investment interest since its launch in 2018 but stressed the growing need to mitigate geopolitical risks and uncertainties.

“The heavy investments required to achieve Africa’s development goals demand that we strongly mobilise private capital,” Mr. Akita noted.

Manuel Moses, Chief Executive Officer (CEO) of African Trade & Investment Development Insurance (ATIDI), highlighted the success of the Regional Liquidity Support Facility, which insures investors against government defaults. He also shared that the facility has financed solar energy projects in Burundi and Malawi and plans to expand to cover more African nations.

Admassu Tadesse, Group President of Trade and Development Bank (TDB), emphasized the role of credit insurance in supporting nearly one-third of TDB’s trade finance portfolio, enabling financing in frontier markets.

Michal Ron, Chief International Officer of SACE, announced €1 billion in new green financing commitments for African projects, adding to SACE’s growing investment exposure, which reached €15 billion in 2024. Ron highlighted the innovative “Push Strategy,” designed to meet Africa’s dynamic market demands while promoting sustainability.

Heike Harmgart, EBRD’s Managing Director for Sub-Saharan Africa, compared green financing tools to medical care, stating: “Innovative and flexible insurance products are crucial to ensure that investors remain confident and that their ‘patient’ stays healthy.”

Similarly, Haytham El Maayergi, Executive Vice President of Afreximbank, stressed the importance of engaging DFIs, ECAs, and insurers early in the project lifecycle to preempt risks and streamline execution.

Lila Granda, Head of Political Risk and Credit at Vantage, noted that collaborative efforts with seasoned insurers have yielded positive results, leveraging their expertise to navigate challenges in African infrastructure projects.

Panelists agreed that innovative financing models and public-private partnerships (PPPs) are critical to unlocking Africa’s vast infrastructure potential. As local capital markets mature and institutional investors increase their involvement, strategic collaborations are expected to drive sustainable financing solutions, fostering economic growth and resilience across the continent.

The AIF 2024 reaffirmed its role as a platform for transformative partnerships, showcasing how innovation and collaboration can overcome Africa’s infrastructure financing challenges while advancing inclusive development.