37% of Infrastructure Investors Invest in Emerging Markets – Study |

July 4, 2018 • General

A New Report by Global Infrastructure Hub, a G20 initiative, has revealed a $ 1 trillion infrastructure investment gap in 10 Compact with African countries over the next 22 years. This represents an investment gap of 42%; Global Infrastructure Outlook: Investment Need in Infrastructure in the Pact with African Countries, Estimates That $ 2.4 Billion of Investments Needed in 10 Countries By This Time at 2040's they want to keep up with the pace of economic growth and fill the gaps in infrastructure. In addition, on the $ 1 trillion investment gap, US $ 415 billion is needed by 2030 if these countries are to meet the United Nations Sustainable Development Goals (SDGs). for universal access to drinking water, sanitation and electricity.

Outlook – for the first time – the magnitude of the need for investment in infrastructure, current investment trends and the corresponding investment gaps at the national and sectoral level. According to the Global Infrastructure Investor Survey 2017 of the Global Infrastructure Hub and the EDHEC Infrastructure Institute of Singapore, 37% of infrastructure investors are investing in emerging markets, compared to 20% in 2016. Among those already investing in the markets 82% want to increase their investment.

Chris Heathcote, CEO of Global Infrastructure Hub, said, "These numbers clearly show investors spending more in emerging markets. However, attracting private sector investment in African countries remains a major challenge. "

" The key to addressing this is to create the right environment to encourage investors to turn their interests into equities, "added Heathcote.New tool updated, InfraCompbad: Define your infrastructure policies in the good direction in the Compact with African countries, revealed that improvement opportunities lie in the governance and regulatory and institutional frameworks in each country. "InfraCompbad notes that Morocco and Rwanda are notable actors, marked by improvements in their regulatory quality, rule of law and investment and competition frameworks.

Heathcote stated that a partnership with these 10 countries would strengthen investor confidence. now more important than ever that emerging markets continue to develop their infrastructure construction projects and that they continue to 39, attract public and private capital in well-identified, selected and prioritized projects. Said Heathcote.

"As the investment environment in these 10 countries improves, investors in infrastructure have a real opportunity to make impactful projects; access to essential services – roads and railways, airports and seaports, telecommunications, drinking water, sanitation and energy – for a large part of the population.

Thierry Déau, founder and CEO of Meridiam, said the Global Infrastructure Hub has provided much needed new data that reveals the infrastructure investment gap at the national and sectoral levels.

"As an active investor in Africa, these new data from the Global Infrastructure Hub will help us identify the most important needs – and where we as investors can help achieve the SDGs of the world. That we risk not being achieved unless all of us – investors, governments and advisers – intensify our commitments in the region. "

Philippe Valahu, CEO, Private Infrastructure Development The Group (PIDG) agreed.

"Investing in Emerging Markets is PIDG's core business, having leveraged more than $ 15 billion in private sector investment in Africa since 2002," new data from Global Infrastructure Hub reveals the urgent need for much higher investments and the great opportunity for institutional investors to fill the gaps in infrastructure and realize risks.

The two reports were studied and developed over a six-month period in partnership with Oxford Economics (Outlook) and KPMG (InfraCompbad).

Published by Fundisiwe Maseko
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