Local Sources of Financing for Infrastructure in Africa : A Cross-Country Analysis
With the exception of South Africa, local financial markets in sub-Saharan Africa remain underdeveloped and small, with a particular dearth of financing with maturity terms commensurate with the medium- to long-term horizons of infrastructure proje...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090327160051 http://hdl.handle.net/10986/4076 |
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okr-10986-4076 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO BANK ACCOUNTING ASSET HOLDINGS AVAILABILITY OF BANK CREDIT BALANCE SHEET BANK ASSETS BANK BONDS BANK CREDIT BANK DEPOSITS BANK FINANCING BANK LENDER BANK LENDING BANK LOANS BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEMS BILATERAL TRANSACTIONS BOND ISSUES BORROWER BROAD MONEY CAPITAL FLOW CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL MARKETS DEVELOPMENT CENTRAL BANK CENTRAL BANKS COLLATERAL COMMERCIAL BANK COMMERCIAL BANK LENDING COMMERCIAL BANKS COMMERCIAL CREDIT CORPORATE BOND CORPORATE BOND MARKETS CORPORATE BONDS CREDIT DISCIPLINE CREDIT RATING CREDIT RATINGS CREDIT RISK CREDIT RISK EVALUATION CREDITORS CREDITWORTHINESS CREDITWORTHY BORROWERS CURRENCY CURRENCY MISMATCH DEBT BURDENS DEBT FINANCING DEBT RELIEF DEMAND FOR CREDIT DEPOSIT DEPOSIT MONEY BANK DEPOSIT MONEY BANKS DEPOSITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK DEVELOPMENT FINANCE DIVERSIFIED PORTFOLIO DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC DEBT DOMESTIC FINANCIAL MARKETS EMERGING MARKET EMERGING MARKET ECONOMY EQUITIES EQUITY ISSUES EQUITY MARKETS EXPENDITURE EXPORTERS EXTERNAL DEBT FINANCES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL SECTOR DEVELOPMENT FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL POLICIES FOREIGN CURRENCY FUND MANAGERS GOVERNMENT BOND GOVERNMENT BOND MARKETS GOVERNMENT BONDS GOVERNMENT BORROWING GOVERNMENT GUARANTEES GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT HOLDINGS HOLDINGS OF GOVERNMENT SECURITIES INCOME LEVELS INFLATION INFLATION RATES INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCE INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE COMPANY INSURANCE POLICIES INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL STATISTICS INVENTORY INVESTING INVESTMENT ALLOCATION INVESTMENT ALLOCATIONS INVESTMENT ALTERNATIVES INVESTMENT BANK INVESTMENT CLIMATE INVESTMENT INSTRUMENTS INVESTMENT PORTFOLIO INVESTMENT STRATEGY INVESTOR BASE ISSUANCE LIQUIDITY LOAN LOAN MATURITIES LOAN PORTFOLIOS LOCAL BANK LOCAL BANKS LOCAL CAPACITY LOCAL CURRENCIES LOCAL CURRENCY LOCAL FINANCE LOCAL FINANCIAL MARKETS LOCAL INFLATION LOCAL INFRASTRUCTURE LOCAL MARKET LONG-TERM FINANCE MACROECONOMIC CONDITIONS MACROECONOMIC DATA MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET ANALYSTS MARKET CAP MARKET CONDITIONS MARKET REFORMS MARKET RETURNS MATURITIES MATURITY MAXIMUM MATURITIES MAXIMUM MATURITY MONETARY FUND MORTGAGE MORTGAGE LOANS MUTUAL FUNDS NONPERFORMING LOANS OUTSTANDING BANK LOANS OUTSTANDING CREDIT OUTSTANDING LOANS PAYMENT OF INTEREST PAYMENT SYSTEMS PENSION PENSION ASSETS PENSION FUND PENSION FUND ASSET PENSION FUND ASSETS PENSION FUNDS PENSION SYSTEM PENSION SYSTEM REFORMS PENSION SYSTEMS PENSIONS POTENTIAL INVESTORS PRICE RISK PRIVATE BANK PRIVATE CREDIT PRIVATE FINANCING PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR CREDIT PUBLIC BORROWING REAL INTEREST REAL INTEREST RATES REGULATORY FRAMEWORKS RETURNS RISK EVALUATION RISK PREMIUMS SAVINGS INSTRUMENTS SAVINGS RATE SAVINGS RATES SECURITIES SECURITIES EXCHANGES SHAREHOLDER SHORT-TERM BANK DEPOSITS SHORT-TERM FINANCE SHORT-TERM GOVERNMENT SECURITIES STOCK EXCHANGE SUPERVISORY AUTHORITY TELECOMMUNICATIONS TERM DEPOSITS TIME DEPOSITS TIMELY PAYMENT TRANCHE TRANCHES TRANSACTION TRANSACTION COSTS UNDERDEVELOPED CAPITAL MARKETS VALUE OF COLLATERAL VARIABLE RATES |
| spellingShingle |
ACCESS TO BANK ACCOUNTING ASSET HOLDINGS AVAILABILITY OF BANK CREDIT BALANCE SHEET BANK ASSETS BANK BONDS BANK CREDIT BANK DEPOSITS BANK FINANCING BANK LENDER BANK LENDING BANK LOANS BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEMS BILATERAL TRANSACTIONS BOND ISSUES BORROWER BROAD MONEY CAPITAL FLOW CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL MARKETS DEVELOPMENT CENTRAL BANK CENTRAL BANKS COLLATERAL COMMERCIAL BANK COMMERCIAL BANK LENDING COMMERCIAL BANKS COMMERCIAL CREDIT CORPORATE BOND CORPORATE BOND MARKETS CORPORATE BONDS CREDIT DISCIPLINE CREDIT RATING CREDIT RATINGS CREDIT RISK CREDIT RISK EVALUATION CREDITORS CREDITWORTHINESS CREDITWORTHY BORROWERS CURRENCY CURRENCY MISMATCH DEBT BURDENS DEBT FINANCING DEBT RELIEF DEMAND FOR CREDIT DEPOSIT DEPOSIT MONEY BANK DEPOSIT MONEY BANKS DEPOSITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK DEVELOPMENT FINANCE DIVERSIFIED PORTFOLIO DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC DEBT DOMESTIC FINANCIAL MARKETS EMERGING MARKET EMERGING MARKET ECONOMY EQUITIES EQUITY ISSUES EQUITY MARKETS EXPENDITURE EXPORTERS EXTERNAL DEBT FINANCES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL SECTOR DEVELOPMENT FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL POLICIES FOREIGN CURRENCY FUND MANAGERS GOVERNMENT BOND GOVERNMENT BOND MARKETS GOVERNMENT BONDS GOVERNMENT BORROWING GOVERNMENT GUARANTEES GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT HOLDINGS HOLDINGS OF GOVERNMENT SECURITIES INCOME LEVELS INFLATION INFLATION RATES INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCE INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE COMPANY INSURANCE POLICIES INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL STATISTICS INVENTORY INVESTING INVESTMENT ALLOCATION INVESTMENT ALLOCATIONS INVESTMENT ALTERNATIVES INVESTMENT BANK INVESTMENT CLIMATE INVESTMENT INSTRUMENTS INVESTMENT PORTFOLIO INVESTMENT STRATEGY INVESTOR BASE ISSUANCE LIQUIDITY LOAN LOAN MATURITIES LOAN PORTFOLIOS LOCAL BANK LOCAL BANKS LOCAL CAPACITY LOCAL CURRENCIES LOCAL CURRENCY LOCAL FINANCE LOCAL FINANCIAL MARKETS LOCAL INFLATION LOCAL INFRASTRUCTURE LOCAL MARKET LONG-TERM FINANCE MACROECONOMIC CONDITIONS MACROECONOMIC DATA MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET ANALYSTS MARKET CAP MARKET CONDITIONS MARKET REFORMS MARKET RETURNS MATURITIES MATURITY MAXIMUM MATURITIES MAXIMUM MATURITY MONETARY FUND MORTGAGE MORTGAGE LOANS MUTUAL FUNDS NONPERFORMING LOANS OUTSTANDING BANK LOANS OUTSTANDING CREDIT OUTSTANDING LOANS PAYMENT OF INTEREST PAYMENT SYSTEMS PENSION PENSION ASSETS PENSION FUND PENSION FUND ASSET PENSION FUND ASSETS PENSION FUNDS PENSION SYSTEM PENSION SYSTEM REFORMS PENSION SYSTEMS PENSIONS POTENTIAL INVESTORS PRICE RISK PRIVATE BANK PRIVATE CREDIT PRIVATE FINANCING PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR CREDIT PUBLIC BORROWING REAL INTEREST REAL INTEREST RATES REGULATORY FRAMEWORKS RETURNS RISK EVALUATION RISK PREMIUMS SAVINGS INSTRUMENTS SAVINGS RATE SAVINGS RATES SECURITIES SECURITIES EXCHANGES SHAREHOLDER SHORT-TERM BANK DEPOSITS SHORT-TERM FINANCE SHORT-TERM GOVERNMENT SECURITIES STOCK EXCHANGE SUPERVISORY AUTHORITY TELECOMMUNICATIONS TERM DEPOSITS TIME DEPOSITS TIMELY PAYMENT TRANCHE TRANCHES TRANSACTION TRANSACTION COSTS UNDERDEVELOPED CAPITAL MARKETS VALUE OF COLLATERAL VARIABLE RATES Irving, Jacqueline Manroth, Astrid Local Sources of Financing for Infrastructure in Africa : A Cross-Country Analysis |
| geographic_facet |
Africa Africa Africa |
| relation |
Policy Research working paper ; no. WPS 4878 |
| description |
With the exception of South Africa,
local financial markets in sub-Saharan Africa remain
underdeveloped and small, with a particular dearth of
financing with maturity terms commensurate with the medium-
to long-term horizons of infrastructure projects. But as
financial market reforms gather momentum, there is growing
awareness of the need to tap local and regional sources.
Drawing on a comprehensive new database constructed for the
purpose of this research, the paper assesses the actual and
potential role of local financial systems for 24 African
countries in financing infrastructure. The paper concludes
that further development and more appropriate regulation of
local institutional investors would help them realize their
potential as financing sources, for which they are better
suited than local banks because their liabilities would
better match the longer terms of infrastructure projects.
There are clear signs of positive change: private pension
providers are emerging in Africa, there is a shift from
defined benefit toward defined contribution plans, and
African institutional investors have begun taking a more
diversified portfolio approach in asset allocation. Although
capital markets remain underdeveloped, new issuers in
infrastructure sectors-particularly of corporate bonds-are
coming to market in several countries, in some cases
constituting the debut issue. More than half of the
corporate bonds listed at end-2006 on these countries'
markets were by companies in infrastructure sectors. More
cross-border listings and investment within the region-in
both corporate bonds and equity issues-including by local
institutional investors, could help overcome local capital
markets' impediments and may hold significant promise
for financing cross-country infrastructure projects. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Irving, Jacqueline Manroth, Astrid |
| author_facet |
Irving, Jacqueline Manroth, Astrid |
| author_sort |
Irving, Jacqueline |
| title |
Local Sources of Financing for Infrastructure in Africa : A Cross-Country Analysis |
| title_short |
Local Sources of Financing for Infrastructure in Africa : A Cross-Country Analysis |
| title_full |
Local Sources of Financing for Infrastructure in Africa : A Cross-Country Analysis |
| title_fullStr |
Local Sources of Financing for Infrastructure in Africa : A Cross-Country Analysis |
| title_full_unstemmed |
Local Sources of Financing for Infrastructure in Africa : A Cross-Country Analysis |
| title_sort |
local sources of financing for infrastructure in africa : a cross-country analysis |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090327160051 http://hdl.handle.net/10986/4076 |
| _version_ |
1764389810480349184 |
| spelling |
okr-10986-40762021-04-23T14:02:15Z Local Sources of Financing for Infrastructure in Africa : A Cross-Country Analysis Irving, Jacqueline Manroth, Astrid ACCESS TO BANK ACCOUNTING ASSET HOLDINGS AVAILABILITY OF BANK CREDIT BALANCE SHEET BANK ASSETS BANK BONDS BANK CREDIT BANK DEPOSITS BANK FINANCING BANK LENDER BANK LENDING BANK LOANS BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEMS BILATERAL TRANSACTIONS BOND ISSUES BORROWER BROAD MONEY CAPITAL FLOW CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL MARKETS DEVELOPMENT CENTRAL BANK CENTRAL BANKS COLLATERAL COMMERCIAL BANK COMMERCIAL BANK LENDING COMMERCIAL BANKS COMMERCIAL CREDIT CORPORATE BOND CORPORATE BOND MARKETS CORPORATE BONDS CREDIT DISCIPLINE CREDIT RATING CREDIT RATINGS CREDIT RISK CREDIT RISK EVALUATION CREDITORS CREDITWORTHINESS CREDITWORTHY BORROWERS CURRENCY CURRENCY MISMATCH DEBT BURDENS DEBT FINANCING DEBT RELIEF DEMAND FOR CREDIT DEPOSIT DEPOSIT MONEY BANK DEPOSIT MONEY BANKS DEPOSITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK DEVELOPMENT FINANCE DIVERSIFIED PORTFOLIO DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC DEBT DOMESTIC FINANCIAL MARKETS EMERGING MARKET EMERGING MARKET ECONOMY EQUITIES EQUITY ISSUES EQUITY MARKETS EXPENDITURE EXPORTERS EXTERNAL DEBT FINANCES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL SECTOR DEVELOPMENT FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL POLICIES FOREIGN CURRENCY FUND MANAGERS GOVERNMENT BOND GOVERNMENT BOND MARKETS GOVERNMENT BONDS GOVERNMENT BORROWING GOVERNMENT GUARANTEES GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT HOLDINGS HOLDINGS OF GOVERNMENT SECURITIES INCOME LEVELS INFLATION INFLATION RATES INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCE INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE COMPANY INSURANCE POLICIES INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL STATISTICS INVENTORY INVESTING INVESTMENT ALLOCATION INVESTMENT ALLOCATIONS INVESTMENT ALTERNATIVES INVESTMENT BANK INVESTMENT CLIMATE INVESTMENT INSTRUMENTS INVESTMENT PORTFOLIO INVESTMENT STRATEGY INVESTOR BASE ISSUANCE LIQUIDITY LOAN LOAN MATURITIES LOAN PORTFOLIOS LOCAL BANK LOCAL BANKS LOCAL CAPACITY LOCAL CURRENCIES LOCAL CURRENCY LOCAL FINANCE LOCAL FINANCIAL MARKETS LOCAL INFLATION LOCAL INFRASTRUCTURE LOCAL MARKET LONG-TERM FINANCE MACROECONOMIC CONDITIONS MACROECONOMIC DATA MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET ANALYSTS MARKET CAP MARKET CONDITIONS MARKET REFORMS MARKET RETURNS MATURITIES MATURITY MAXIMUM MATURITIES MAXIMUM MATURITY MONETARY FUND MORTGAGE MORTGAGE LOANS MUTUAL FUNDS NONPERFORMING LOANS OUTSTANDING BANK LOANS OUTSTANDING CREDIT OUTSTANDING LOANS PAYMENT OF INTEREST PAYMENT SYSTEMS PENSION PENSION ASSETS PENSION FUND PENSION FUND ASSET PENSION FUND ASSETS PENSION FUNDS PENSION SYSTEM PENSION SYSTEM REFORMS PENSION SYSTEMS PENSIONS POTENTIAL INVESTORS PRICE RISK PRIVATE BANK PRIVATE CREDIT PRIVATE FINANCING PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE SECTOR CREDIT PUBLIC BORROWING REAL INTEREST REAL INTEREST RATES REGULATORY FRAMEWORKS RETURNS RISK EVALUATION RISK PREMIUMS SAVINGS INSTRUMENTS SAVINGS RATE SAVINGS RATES SECURITIES SECURITIES EXCHANGES SHAREHOLDER SHORT-TERM BANK DEPOSITS SHORT-TERM FINANCE SHORT-TERM GOVERNMENT SECURITIES STOCK EXCHANGE SUPERVISORY AUTHORITY TELECOMMUNICATIONS TERM DEPOSITS TIME DEPOSITS TIMELY PAYMENT TRANCHE TRANCHES TRANSACTION TRANSACTION COSTS UNDERDEVELOPED CAPITAL MARKETS VALUE OF COLLATERAL VARIABLE RATES With the exception of South Africa, local financial markets in sub-Saharan Africa remain underdeveloped and small, with a particular dearth of financing with maturity terms commensurate with the medium- to long-term horizons of infrastructure projects. But as financial market reforms gather momentum, there is growing awareness of the need to tap local and regional sources. Drawing on a comprehensive new database constructed for the purpose of this research, the paper assesses the actual and potential role of local financial systems for 24 African countries in financing infrastructure. The paper concludes that further development and more appropriate regulation of local institutional investors would help them realize their potential as financing sources, for which they are better suited than local banks because their liabilities would better match the longer terms of infrastructure projects. There are clear signs of positive change: private pension providers are emerging in Africa, there is a shift from defined benefit toward defined contribution plans, and African institutional investors have begun taking a more diversified portfolio approach in asset allocation. Although capital markets remain underdeveloped, new issuers in infrastructure sectors-particularly of corporate bonds-are coming to market in several countries, in some cases constituting the debut issue. More than half of the corporate bonds listed at end-2006 on these countries' markets were by companies in infrastructure sectors. More cross-border listings and investment within the region-in both corporate bonds and equity issues-including by local institutional investors, could help overcome local capital markets' impediments and may hold significant promise for financing cross-country infrastructure projects. 2012-03-19T19:09:34Z 2012-03-19T19:09:34Z 2009-03-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090327160051 http://hdl.handle.net/10986/4076 English Policy Research working paper ; no. WPS 4878 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Africa Africa |