Why de-risking is key to unlocking Africa’s investment potential
- A Moonshot panel discussed how government-backed guarantees could transform Africa's infrastructure and impact-investing landscape.
- Fola Fagbule from the Africa Finance Corporation highlighted the challenges of financing local infrastructure in local currency due to inflation.
- Institutional capital remains cautious as infrastructure, energy, and tech projects struggle to secure funding due to perceived risks.
The reliance on government-backed guarantees and blended finance mechanisms is a pragmatic approach to overcoming the investment challenges in Africa. However, fostering a culture of trust and transparency is equally important to ensure that investors feel secure in their commitments. The focus on measurable social impact outcomes could also enhance the attractiveness of projects to potential investors.
