Financing African Infrastructure: Unlocking Bankable Projects
Infrastructure in Africa faces a funding gap over US $400 billion annually — approximately 14 % of GDP by 2030. While $4 trillion in local capital exists in pension funds, banks, and sovereign wealth funds, mobilizing it requires rigorous project readiness. Here’s how Tributum Consultants (TCPL) and its partners can bridge this gap.
Understanding “Bankability”
A bankable project offers lenders confidence through defined risk‑return profiles. This stems from:
- Credible technical and financial viability assessments
- Strong legal, regulatory, and procurement frameworks
- Evidence of political will and prioritization.
TCPL ensures each project has an early-stage “quality label”—using tools like PIDA—that signals its readiness to investors.
Role of DFIs in Derisking Projects
Development Finance Institutions (DFIs) like AfDB, IFC, MIGA provide:
- Guarantees & risk insurance
- Concessional and blended finance
- Advisory and capacity-building
These interventions help structure effective Public–Private Partnerships (PPPs).
Structuring PPP Models
Effective PPPs require:
- Reliable legal and regulatory environments
- Clear long-term contractual arrangements with provisions for political and tariff changes
- Escrow or standby financing mechanisms
TCPL collaborates with host governments and DFIs to establish robust PPP units and tender frameworks that de-risk investments.
Mobilizing Local Capital
To tap Africa’s $4 trillion, countries must enact reforms:
- Remove constraints on long-term domestic capital deployment
- Enhance savings rates and transparency
TCPL supports stakeholders in navigating domestic regulations and connecting projects to pension funds, sovereign funds, and banks.
Our 5‑Step Advantage
Our streamlined model—Identify → Develop → Framework → Implement → Handover—ensures:
- Identify: Projects meet regional priorities with early stakeholder consensus
- Develop: Technical, financial, environmental preparation with DFI support
- Framework: Strong contracts with policy backing and credit enhancements
- Implement: Finance mobilization and execution diligence
- Handover: Private-sector-driven operations supported with exit planning