Africa is home to some of the world’s fastest-growing economies, offering promising investment opportunities in high- growth sectors like infrastructure development, agriculture, manufacturing, and services. However, the financing of investments in Africa mandates design thinking, as commercial and concessional Lines of Credit (LoC) offered through the Government of India channels have ceased to be the most preferred financing routes. Instead, there is a strong felt- need for VC/PE participation in project investments, Public-Private Partnership (PPP) projects, participation of global institutional investment funds, buyer’s credit (as provided by EXIM Bank of India), private sector financing, development of local capital & long-term bond markets, use of pension funds, green financing, climate change mitigation financing options, among others. The trilateral partnerships have significantly broadened the scope and size of investments in Africa, to spur farm sector modernisation, manufacturing growth, entrepreneurship development, among others. Unlike the past, the trilateral partnerships are largely B2B and not B2G.
Are the investment projects in Africa adequately bankable? Are the projects scalable to attract private investments? How local regulatory frameworks can augment investment financing? Are the host country investment norms facilitative for PPP projects? Are the trilateral partnerships contributing to Africa’s export growth, creation of RVCs and integration with GVCs?