Development Barriers - How to Attract Private Finance to Africa’s Development
Around 95% of infrastructure spending in sub-Saharan Africa is funded by national governments rather than the private sector.
This IMF research blog provides some useful context on the issue and discusses some of the barriers to attracting private sector finance such as currency risk, exit costs for investors and under-developed financial markets.
It is a familiar but important story.
Sub-Saharan Africa has huge infrastructure needs to drive inclusive growth and sustainable development. It attracts only 2 per cent of global foreign direct investment and much of this is skewed towards extractive sectors.