The financing space in Africa is thriving and there is an increasing number of players interested in financing projects across the continent. Even the most conservative projections show these trends continuing and expanding.
With consistent increasing rates of return on foreign direct investment (FDI) since 1998, Africa exceeded the rest of the world on return on FDI in 2006 and 2007. Currently, 7 out of 10 of the world’s fastest growing economies are in Africa, according to the International Monetary Fund (IMF). Approximately 80% of global institutional investors surveyed have a positive view on future performance of investments in Africa, according to recent institutional surveys. However, there has been a disconnect between the substance of the African finance dialogue and the practical realities faced by the players actually financing projects across the continent. Discussions tend to be overly broad and do not cater to the practical challenges encountered by relevant players working in the sector.
In order to address this gap, GHICC is creating a new channel of work on finance that will facilitate more practical discussions for key players and provide access to GHICC members who want exposure to activities in the space. The primary instrument in this new channel will be a Finance Steering Group that will host African Finance Ministers and Central Bank Governors on a regular basis to discuss key issues surrounding investing and doing financial business in their respective markets. For example, there will be discussions on challenges encountered with specific projects, public finance, regional financial integration, local currency financing, foreign exchange risk management and capital controls.
For more information on the Finance Program and Working Group, contact the Program Manager.