This briefing summarises the findings of a research programme on private finance for infrastructure investment. The aim of the programme was to understand the main constraints on the flow of private capital to infrastructure projects in DFID's focus countries in Sub-Saharan Africa (SSA), excluding South Africa. Such constraints could result from either:
- a lack of bankable project opportunities, which meet the financing requirements of lenders and investors at different points of the project life cycle; or
- a lack of private capital from domestic and international credit and capital markets to finance such projects, linked to issues in these markets rather than the quality of the available projects.
The research focused first on articulating and quantifying the problem, and secondly on potential solutions for developing bankable projects and improving access to finance (particularly the deployment of donor funding interventions). The emphasis is on the provision of a robust evidence base, taking into account limitations in the information available in the public domain, to shed light on both the nature of the problem and the potential solutions.
The ultimate objective of the research is to improve the evidence base for donors, Multilateral Development Banks (MDBs) and partner governments, which will help with planning and programming in the areas of developing and financing infrastructure projects.
Cambridge Economic Policy Associates (CEPA). Mobilising Finance for Infrastructure - Findings Summary. Cambridge Economic Policy Associates (CEPA), London, UK (2015) 4 pp.