In 2020, millions of Africans still have access to electricity for only a few hours a day. According to the African Development Bank, the rate of access to electricity on the continent is limited to 40%, the lowest in the world. Of the $130 billion to $170 billion in investment needed each year to develop infrastructure, Africa is only able to mobilize, at best, half of its needs.

Among the projects funded by InfraCo Africa is the Khoumagueli solar power plant in Guinea Conakry. InfraCo Africa can invest up to $40 million per year in the development of projects in the infrastructure sectors in general and in the energy, water, transport, electric mobility, logistics and social housing sectors (Source: DR)

Despite the progress made, experts still point to many shortcomings that put off investors. The political and administrative context in several countries is not always a guarantee of security. In addition, the portfolio of bankable projects is very limited.

"The problem is at the upstream level and it has not been sufficiently addressed in recent years. The commitment in the development phase is insufficient," says Gilles Vaes, Ceo of InfraCo Africa. The investment in the development phase represents between 5 to 10% of the cost of a project.

"Draining more resources to this crucial stage would change a lot of things for the continent," he said. A number of structures including InfraCo Africa are mobilizing to structure the upstream in order to promote the emergence of a greater number of bankable projects.

Member of the pidg multilateral group ($3.6 billion committed to infrastructure projects and $33.2 billion mobilized from private investors and development finance institutions since 2002) and funded by the Governments of the United Kingdom, of the Netherlands and Switzerland, InfraCo Africa can invest up to $40 million per year in the development of projects in the infrastructure sectors in general and in the energy, water, transport, electric mobility, logistics and social housing sectors. "Our role is to de-risk these projects and allow them to unfold," notes Nabil Saimi, director of development at InfraCo Africa.

platform

Operational since 2004, the structure has accompanied thirteen projects until their financial close, several of which are in the construction and/or operation phase and is involved in thirteen others under development. After Nairobi, it set up a regional office in Casablanca Finance City to manage its activities in the West and Central Africa region. "We are convinced that this is the right platform to develop our activities in this region," says Gilles Vaes. While it does not exclude operations in mature countries such as Morocco, InfraCo Africa's main mandate is to help reduce the infrastructure deficit in countries where the lack is significant. It has already invested in projects in Cameroon, Gambia, Guinea, Liberia, Senegal, Sierra Leone and Chad in Central and West Africa. They are also territories where the need for development, structuring and financing expertise is colossal. "We have the capacity to support developers up to 50% of the necessary capital," says Nabil Saimi.