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  • Compa

    any Nr. 1052250

    F

    A

    9

    FINANCIN

    great inv

    NG AFRIC PUBLIC

    vestmen

    Emm Managin

    CAN INFR PRIVATE

    nt opport

    By manuel M ng Direct

    Co H

    RASTRUC E PARTNE tunity for

    y Musa Sam tor - Head

    orporate Finance I HQ’s are at Northu

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    CTURE TH ERSHIP r the 21s

    mdi d Africa

    IMCI GRO M&A I Restructur

    umberland Avenue +44 (0) 207 127 06

    HROUGH

    st century

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  • Compa

    1.0 INTRO

    Africa to made pr frequent peaceful wealth. private p understa developm reversing

    Accordin whole, av 2016, ex Africa to expected expected

    African G networks developm unemplo the publ sector” (

    Public-Pr Africa’s B in diaspo integratio future. T Monetar African D today ab

    Therefor growing improved opportun corporat future.

    These pr Africa wi countries

    any Nr. 1052250

    ODUCTION

    oday has mad rogress in cre which sprea and non-vio

    “Investors wo partnership (

    anding of the ment impact. g a trend of de

    g to Havas Ho veraging at a

    xperiencing gr o recover the d to be aroun d upturn in glo

    Governments s in their cou ment finance oyment, highe ic and privat IFC , 2013).

    rivate–Partner Business envir ora to return on which has These regiona ry Community Development out catching u

    e, the abund financial sec

    d business en nity for invest e finance and

    ovides oppor ll only continu s that should

    9

    de significant eating politica ad across Afri lent business orldwide reco (PPP) structu risks—and ho Investment i

    ecreasing inve

    orizons, (2017 round 5%. Th

    rowth of arou levels of ec

    nd 3% in 2017 obal trade and

    now look up untries and e model will

    er prices and c e sector to d

    rship can only ronment enco and invest i very positive

    al economic y of Central A Community. T up with rest o

    dant natural ctor and rule nvironment. H tors and finan d project finan

    tunities for in ue to be more be used as pi

    progress in i al stability co ican countries environment

    ognize the po ures. But tak ow they can b in African inf

    estments” (IFC

    7), Africa had he economy s und 1.6% in 2 onomic perfo 7. Furthermor d a rise in oil p

    p to public-pr enhance servi

    improve serv corruption (Fa

    deliver a publ

    y succeed whe ourages educa in Africa. Ano implications blocs include frica; Souther The potential

    of the world in

    resources and e of law, inc However, the nciers. The pro nce. Investing

    nvestors/finan e stable and in ivots for mark

    its effort to p ompare to th s. The implic t. This furthe

    otential for in king advanta be mitigated— frastructure w C , 2013).

    sustained gro slowed down 2016, the low ormance seen re, this growt prices.

    rivate partner ice delivery t vices, while arlam, 2005). lic service wit

    en the busine ation of the yo other importa for political, e

    e; Economic rn African Cus s in these arr

    n its developm

    d energy disc rease in hou infrastructur ovision of infr in Africa now

    nciers to take nvestment frie ket penetratio

    Co H

    provide inves e past, when ations of pol

    er promotes e nvestments in age of these —to optimize was up 33 pe

    owth for abou in growth be

    west for 20 ye n in recent y th is forecast

    rships (PPPs) o their peop avoiding som What then is th full or par

    ess environme oung populat ant factor for economic and Communities stoms Union; rangements su ment.

    coveries, incr usehold spend re gap and th rastructure its

    w is a strategic

    now, especia endly. The str on in Africa, so

    orporate Finance I HQ’s are at Northu

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    tment friendl n military inte itical stability economic act n Africa, espe e opportunitie the project’s ercent in 201

    ut 15 years ac ginning in 20

    ears. Howeve ears. Econom to continue

    to radically i le. However,

    me of the pi s PPP? It is “A rtial transfer

    ent is stable. T ion, and a gro r progress, is

    d social stabilit of West Af East African

    uggest that Af

    rease in midd ding among he lack of ade self would lea c decision for

    ally for long te rategies may h ome of these

    IMCI GRO M&A I Restructur

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    ly environme erventions w y is that, it p tivities and cr ecially throug ies requires investment re

    12 compared

    ross the cont 015 and conti er, 2017 shou mic growth in

    in 2018, drive

    improve infra they expect

    itfalls of priv A partnership of risks to th

    The growing s owing interest s the growing ty now and in

    frican State; Community a

    Africa is very c

    dle-class pop others contr equate funds ad to further those who ca

    erm financing however be, t countries ma

    OUP INTERNATION ring I Strategy I Ex e, London WC2N 5 654 | info@imci-gr

    www.imci-gr

    ent. It has were quite provides a reation of gh public- a proper eturn and

    to 2011,

    inent as a nued into ld enable

    n Africa is en by the

    astructure that this

    vatisation: between

    he private

    stability in t by those g regional n the near Economic

    and South concerned

    ulation, a ributes to s provides growth in

    an see the

    g, because to identify ay include

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    South Af However

    There is a the publ critical ab

    2.0 INFRA

    There is period of be seen investme

    “The pot as PPPs e and appe projects infrastruc investme implemen have bec

    2.1 Achie

    Accordin be about the regio project f Africa’s i only US$

    South Af finance v last 4 ye Rwanda, sub-regio generatio and Mon

    Only one State) su reached developm

    any Nr. 1052250

    frica, Nigeria, r, even in thes

    a growing int ic service can bout fair and

    ASTRUCTURE

    obviously a h f dictatorship as a major d

    ent.

    tential for PPP expand furthe eal to local o has been cha cture PPP proj

    ents with forei nted has expa

    come involved

    evements in A

    g to NEPAD, t $12 billion a on with an ag finance volum nfrastructure 1 billion annu

    frica was by fa volumes. Outs ears include Uganda, and

    on in Sub-Sah on) deals tota

    netary Union)

    e power deal w ub-region. As

    financial clo ment banks, a

    9

    Ghana, Rwa se countries th

    erest by priva n achieve it i attractive risk

    E GAP IN AFRIC

    huge gap in in p, military rule disadvantage

    Ps in Africa is er into new se or regional in anging as ne jects were con ign sponsors t anded, more i

    d across a wide

    African Infrast

    (2014) Public- annually. Ove ggregate deb

    mes, compare gap. On aver

    ually, versus th

    ar the leading side South Afr independent Senegal, as w aran Africa ha alling US $1.8 closed 5 infra

    worth US$130 a recent exa se in 2013, bilateral deve

    anda, Tanzani here are great

    ate investors i nfrastructura

    k-adjusted ret

    CA

    nfrastructural e and violent

    to investme

    seemingly lim ectors such as vestors along w countries a ncentrated in taking the lea innovative pro er range of co

    tructure Proje

    -Private Partn r the last 10

    bt of US$59 b ed to 38% wo rage over the he US$12 billio

    g country for rica, infrastruc

    power plant well as a toll r as been the Ea billion (annu

    astructure dea

    0 million was mple, the US raised 12/14 elopment age

    ia, Mozambiq t challenges in

    in Africa, relat al goals by pr urns on inves

    l developmen conflict that nt, the other

    mitless relative s social servic

    gside larger, i and types of sectors such d. More recen ojects have b

    ountries” (IFC ,

    ect Finance

    nerships (PPPs years (2003-2

    billion. Extrac orldwide. This

    2003-2013 p on requireme

    infrastructure cture project f ts in Camero road in Seneg ast Africa Com

    ual average U als totalling US

    closed in the S$196 million 4-year debt f ency, and a loc

    Co H

    que, Ethiopia, n infrastructu

    tive to Africa’ roviding incen tments (IFC ,

    nt in most Afr destroyed inf r side of it is

    e to its curren ces, tailor them international investors hav

    as power and ntly, the range een undertak , 2013).

    s), funded thr 2013), 158 pr tive industrie s disproportio

    period, infrast ent noted abo

    e, with 45% o finance transa

    oon, Cape Ve gal. During the mmunity with S$180 million S $1.5 billion

    e ECCAS (Econ Sendou coal-

    rom a group cal commercia

    orporate Finance I HQ’s are at Northu

    +

    , Gabon, Bots ral developme

    s needs. By c ntives to priva 2013).

    rican countrie frastruc