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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Main Author: International Finance Corporation
Format: Working Paper
Language:English
en_US
Published: Washington, D.C. 2017
Subjects:
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
id okr-10986-26432
recordtype oai_dc
spelling 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
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic FINANCE
RISK MANAGEMENT
PUBLIC-PRIVATE PARTNERSHIPS
BLENDED FINANCE
CAPITAL MARKETS
spellingShingle 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
geographic_facet 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
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