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« Africa investor co-chairs 9th World Bank-Ai Strategic Dialogue at World Bank Spring Meetings | Main | Africa investor Ai40 Weekly Commentary – 25 April 2016 »

Africa investor champions investment risk at World Bank Spring Meetings 2016

By Staff Reporter | April 22, 2016

Johannesburg, South Africa; Washington DC, USA; 22 April 2016: Africa investor (Ai), a leading international investment and communications group, today announced that Ai partnered the IFC panel at the World Bank-IMF Spring Meetings in Washington, DC entitled Opportunity Africa: Reducing Risk and Mobilizing Financing on a New Scale.

Africa investor, the IFC and CNBC partnered on the event, which was moderated by CNBC Editor-in-Chief, Bronwyn Nielsen. Other panellists included Honourable Claver Gatete, Minister of Finance and Economic Planning, Rwanda; Honourable Abdourahmane Cissé, Minister of Budget, Côte d’Ivoire; Saran Kebet-Koulibably, Vice President for Corporate Risk and Sustainability at the IFC (and also a member of IFC’s Management Team); Shannon May, Chief Strategy Office and Chief Development Officer for Bridge International Academies, and Edward J. Mathias, Managing Director at the Carlyle Group.

It followed the launch of an innovative, ground-breaking IFC report, New Horizons in African Finance, in which the IFC concludes that even in difficult economic and risk environments, methods of financing that better mitigate risk can be more widely adopted to fund successful investments on a larger scale in Africa. The panel explored some lessons from recent successful models that tap into enduring trends of growth and how local and international financial institutions and capital markets can support the private sector to drive forward Africa’s next decade of development.

In his comments, Danso stated that UNCTAD estimates put the cost of achieving the Sustainable Development Goals at US $2.5 trillion a year globally over the next 15 years; a large portion of which relates to Africa. The continent will therefore need a dramatic change of approach and scale if it is to avoid the devastating impact that not addressing investment risk and capital market development in a sophisticated manner will have on its growth and competitiveness.

Danso also introduced a game-changing bond solution that Africa investor is collaborating on, which is a senior fully-secured debt instrument of an insurance company, with no concentration risk for a regulated entity, designed to uniquely de-risk global institutional investment into Africa for the insurance market and global and African institutional investors. The product is unique in nature and offers a AAA-rated, 30-50 year nominal maturity bond with BBB returns with compensated pre-payment and is solvency II compliant, the most robust regulation for the global insurance market.

Danso called on government leaders and development finance partners to redouble efforts to better engage the private sector and develop instruments to address perceived and actual risk for investing in critical infrastructure projects on the continent. He urged that a development finance partners-supported platform be established, on the scale of Power Africa, Africa50 and the Global Infrastructure Facility, to tackle investment risk in Africa and bring world class governance into the investment management industry. Danso also introduced a game changing bond solution that Africa investor is collaborating on, designed to uniquely de-risk global institutional investment into Africa for the insurance market and global and African institutional investors.

ENDS**
Note to Editors

For more information on Africa investor, contact Catherine Wright on +27 11 783 2431 or cwright@africainvestor.com.

About Africa investor - www.africainvestor.com
Africa investor is a specialist investment and communications firm advising governments, international organisations and businesses on strategies for capital market and foreign direct investments in Africa. Africa investor publishes Africa investor, the leading international newsstand magazine for Africa’s investment decision makers; maintains the Africa investor 40 Investors’ Index, hosts the Ai Index Series Summit & Awards and the Africa investor Infrastructure Projects Summit & Awards, among other events.

Topics: Ai Press Office, All Sectors |