New Horizons in African Finance : Reducing Risk and Mobilizing Financing on a New Scale
Africa is a region with enormous potential for private investors. It is a continent in transition, with rapid urbanization, increasingstability, a young and growing population, expanding internet connectivity, rising incomes, and shifting consumpti...
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| Format: | Working Paper |
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Washington, D.C.
2017
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| Online Access: | http://documents.worldbank.org/curated/en/294191489582398630/New-horizons-in-African-finance-reducing-risk-and-mobilizing-financing-on-a-new-scale http://hdl.handle.net/10986/26432 |
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okr-10986-264322021-05-25T09:56:11Z New Horizons in African Finance : Reducing Risk and Mobilizing Financing on a New Scale International Finance Corporation FINANCE RISK MANAGEMENT PUBLIC-PRIVATE PARTNERSHIPS BLENDED FINANCE CAPITAL MARKETS Africa is a region with enormous potential for private investors. It is a continent in transition, with rapid urbanization, increasingstability, a young and growing population, expanding internet connectivity, rising incomes, and shifting consumption patterns. Taken together, these enduring trends have created an abundance of commercial opportunities across the continent and turned the region into a place that investors cannot afford to ignore. Yet declining commodity prices, depreciating currencies and slowing global growth have increased uncertainty on the continent and sharply reduced liquidity that companies had used to expand activities in recent years. Economies face a significant challenge to diversify and export a wider range of goods and services.Even before recent global economic turmoil emerged, investor activity in Africa was constrained by structural obstacles and a lack of financing options that often inhibited the effective distribution and mitigation of risk associated with large-scale or long-term projects. Fortunately, companies looking to seize still significant opportunities in Africa can benefit from additional sources of financing, as well as tools that crowd in more private sector participants and mitigate risk, spreading it among different investor classes and over longer timeframes. Tools such as blended finance, co-financing, local debt and equity instruments, private equity, and public-private partnerships are being deployed in Africa in new ways that address risks associated with low-income and fragile states. They provide innovative paths to securing financing on a scale that can match the scope of business opportunities and help manage risk in high-growthAfrican markets. 2017-04-24T16:59:18Z 2017-04-24T16:59:18Z 2016 Working Paper http://documents.worldbank.org/curated/en/294191489582398630/New-horizons-in-African-finance-reducing-risk-and-mobilizing-financing-on-a-new-scale http://hdl.handle.net/10986/26432 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Washington, D.C. Publications & Research Publications & Research :: Working Paper Africa Sub-Saharan Africa |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
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English en_US |
| topic |
FINANCE RISK MANAGEMENT PUBLIC-PRIVATE PARTNERSHIPS BLENDED FINANCE CAPITAL MARKETS |
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FINANCE RISK MANAGEMENT PUBLIC-PRIVATE PARTNERSHIPS BLENDED FINANCE CAPITAL MARKETS International Finance Corporation New Horizons in African Finance : Reducing Risk and Mobilizing Financing on a New Scale |
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Africa Sub-Saharan Africa |
| description |
Africa is a region with enormous
potential for private investors. It is a continent in
transition, with rapid urbanization, increasingstability, a
young and growing population, expanding internet
connectivity, rising incomes, and shifting consumption
patterns. Taken together, these enduring trends have created
an abundance of commercial opportunities across the
continent and turned the region into a place that investors
cannot afford to ignore. Yet declining commodity prices,
depreciating currencies and slowing global growth have
increased uncertainty on the continent and sharply reduced
liquidity that companies had used to expand activities in
recent years. Economies face a significant challenge to
diversify and export a wider range of goods and
services.Even before recent global economic turmoil emerged,
investor activity in Africa was constrained by structural
obstacles and a lack of financing options that often
inhibited the effective distribution and mitigation of risk
associated with large-scale or long-term projects.
Fortunately, companies looking to seize still significant
opportunities in Africa can benefit from additional sources
of financing, as well as tools that crowd in more private
sector participants and mitigate risk, spreading it among
different investor classes and over longer timeframes. Tools
such as blended finance, co-financing, local debt and equity
instruments, private equity, and public-private partnerships
are being deployed in Africa in new ways that address risks
associated with low-income and fragile states. They provide
innovative paths to securing financing on a scale that can
match the scope of business opportunities and help manage
risk in high-growthAfrican markets. |
| format |
Working Paper |
| author |
International Finance Corporation |
| author_facet |
International Finance Corporation |
| author_sort |
International Finance Corporation |
| title |
New Horizons in African Finance : Reducing Risk and Mobilizing Financing on a New Scale |
| title_short |
New Horizons in African Finance : Reducing Risk and Mobilizing Financing on a New Scale |
| title_full |
New Horizons in African Finance : Reducing Risk and Mobilizing Financing on a New Scale |
| title_fullStr |
New Horizons in African Finance : Reducing Risk and Mobilizing Financing on a New Scale |
| title_full_unstemmed |
New Horizons in African Finance : Reducing Risk and Mobilizing Financing on a New Scale |
| title_sort |
new horizons in african finance : reducing risk and mobilizing financing on a new scale |
| publisher |
Washington, D.C. |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/294191489582398630/New-horizons-in-African-finance-reducing-risk-and-mobilizing-financing-on-a-new-scale http://hdl.handle.net/10986/26432 |
| _version_ |
1764461909944303616 |