Africa needs creative finance solutions

Author: Lizzie Meager | Published: 28 Apr 2017

Africa-focused investment funds are still struggling to find eligible projects and assets to invest in. A new, more collaborative approach to financing may be needed to boost growth.

IFLR first reported concerns that African businesses were not yet ready to absorb existing volumes of private equity (PE) funds dedicated to the continent in 2015.

Now those concerns appear to have crystallised as the additional financing available from PE firms has not brought the boom in growth many expected when funds first began entering the continent.

"Development is constrained not by a lack of financing, but by a lack of investable projects," said Simon Jackson, project finance director at Access Power in Dubai. "The challenge with smaller projects is to finance them without drowning the economics in legal and due diligence costs."

To counteract recent challenges, Jonathan de la Pasture, head of Africa debt finance at Liberty said the firm...