African Infrastructure

Actis on Infrastructure:

There is increased interest in African infrastructure opportunities from a host of investors experienced in, and new to, African countries. Development finance institutions (DFIs) continue to play a lead role in advising and financing challenging projects. African and international banks are broadening their debt offerings to include equity for infrastructure projects, contractors are prepared to commit more equity and State-sponsored entities from countries that include Russia and China are taking on significant infrastructure projects...Infrastructure assets have long lives, and it is impossible to forecast every turn in the fortunes of a country or a sector over a 20- or 30-year period. Time will tell whether the private-sector transactions currently being structured and negotiated are pricing the risk correctly, but the indications are that Africa's risk continues to be over-rated and experienced investors are able to lock in superior, risk-adjusted returns...[continue reading]