Frontier 100 will host an invitation-only forum, October 26-27 in New York City, bringing together Frontier 100 members, representatives from multinational corporations and prominent investors to improve perceptions of African markets.
Expansion of infrastructure in Africa has had significant impact; the World Bank attributes over half of Africa’s recent improved growth performance to investments in infrastructure. Continued demand for improved networks and services as well as high profit potential makes Africa a prime location for private sector investment. As successful expansion of telecommunications networks has proven, there is a strong demand and willingness to pay for services. Transportation, power and water networks now offer opportunities to capture similar returns and improve living conditions for millions.
However, current levels of foreign investment are not enough to meet Africa’s infrastructure needs of $90 billion a year. Foreign funding is currently dominated by China, which provided 77% of funding in 2007. Private sector investment from developed countries must increase to realize Africa’s growth potential.
What barriers discourage companies and investors from the United States and Europe from investing in African projects? According to Frontier 100 member Andrew Alli, CEO of African Finance Corporation (AFC), “One of the things that is missing is that there are just not that many well developed, bankable projects in which people can actually invest.” He attributes this to lack of expertise and capital, and through AFC he commits long-term funding to develop and execute profitable projects.
At the Fall Forum, Mr. Alli will join other Frontier 100 CEOs from the infrastructure interest group including Brian Herlihy, Oumar Sow and Mathews Chikaonda to discuss ways to increase investment in infrastructure and to promote deals for investment facilitation. Frontier 100 members will also meet with representatives from multinational corporations (MNCs) to build relationships with potential financing sources. Relationships with African CEOs will provide MNC representatives with connections to potential local partners and insight into local investment climates.
