Closing Africa’s infrastructure gap: innovative financing and risks

A key issue for Africa is to close its vast infrastructure gap, which would help the continent to reach the path of strong, sustained and shared growth. The substantial financial needs present will require that countries increasingly rely on innovative financing. They are also an opportunity for private investors and emerging partners to benefit from Africa’s growth take-off, provided that the overall financing arrangements meet debt sustainability criteria. Given the relatively high risk perceptions associated with infrastructure investment in Africa, risk mitigation instruments are needed. Taking a broader view of sustainable growth (i.e. one encompassing also social and environmental aspects), it is also important that African countries shift as much as possible to ‘clean energy financing’.