Africa’s Infrastructure Finance
Africa’s infrastructure investment gap has widened over time. Addressing the mismatch between developed countries’ “global savings glut” and African countries’ “investment dearth” might be a win-win. To facilitate that matching, some risk mitigation tools can be used. In this brief, we propose that by providing such risk mitigation tools, development institutions and governments can crowd-in private investment rather than crowd them out by providing full financing.
This article was originally published on T20 website, as our Fellow Otaviano Canuto, and research assistant in economics, Mahmoud Arbouch are part of the T20 Task Force 3 on infrastructure investment and financing.