The Africa Finance Corporation (AFC) alongside its development partners
has announced the launch of the Africa Project Developers Initiative
(APDI).
APDI is a think tank and network to
promote and enable project development in Africa. It creates a platform
that fosters continuous dialogue amongst members, standardises project
development documentation, develops market benchmarks, enables knowledge
transfer, leads and facilitates independent research and serves as a
policy advocacy forum for the industry.
A significant bottleneck in unlocking
Africa’s infrastructure is the development of viable projects that meet
the viability and bankability tests of financiers. African project
development itself is a proven asset class, with an increasing number of
projects successfully reaching financial close: Azura, Nigeria;
Cenpower, Ghana; Cabeolica, Cape Verde; Henry Konan Bedie Bridge, Cote D
Ivoire.
The challenges experienced by developers
require the establishment of an innovative and collective approach to
addressing the issues. The average project development time span from
concept to financial close is 7 years. If Africa is to make an impactful
difference and meet its developmental aspirations, a think tank such as
the Africa Project Development Initiative, is an imperative for project
developers.
A statement quoted the Executive
Director and Chief Investment Officer of AFC,Oliver Andrews to have
said: “There are huge opportunities for international investors in
Africa if its much-needed large scale infrastructure projects are
bankable. As one of Africa’s leading project developers, AFC knows the
challenges facing both developers and investors and has successfully
negotiated them in the past to bring about some of the continent’s most
significant infrastructure projects. APDI will combine our experience
and expertise with that of our partners to create innovative solutions
to the issues inherent with project development.”
The President and CEO of AFC, Mr. Andrew
Alli, announced the establishment of APDI at the last edition of the
Africa Investor Conference in 2015. AFC will be collaborating with
partners such as FMO and IFC, amongst others, to have a pre-launch round
table meeting in May 2016 in Lusaka, on the occasion of the Annual
General Meetings of the African Development Bank. A formal launch is
planned in September 2016.
AFC’s mission is to address Africa’s
pressing infrastructure needs and build the foundations for robust
economic development across the continent, all the while seeking a
competitive return on investment for its shareholders. To date the
corporation has invested over $5 billion in projects across 22 African
countries and in a wide range of sectors including power,
telecommunications, transport and logistics, natural resources and heavy
industries.
by Obinna Chima
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