IFC suggests new ways to finance the development of Africa
In a report, the organisation recommends the use of innovative financing mechanisms.A new report by the International Finance Corporation (IFC) calls on African decision makers to give priority to innovative financing mechanisms.
Unveiled at the end of the fourth edition of the Africa CEO Forum, held in Abidjan this week, the document states that "even in harsh and risky environments, it is possible to adopt funding methods that mitigate the risk in a bid to finance investments on a larger scale in Africa. "
The report recommends strengthening the financing approaches that have demonstrated their effectiveness in order to reduce risk, to mobilise funds and build financial markets and "capture the enormous opportunities offered by Africa's transition".
The continent could absorb annually over 90 billion dollars of investment in infrastructure, whereas it only receives half right now although funding sources "abound", the study states.
IFC recommends financing methods such as public-private partnerships, co-financing, joint financing, capital markets and private equity.
"It is essential to mobilise investment from these very diverse and promising sources for the coming years," the report concludes.