Financing infrastructure development in Africa

As African countries continue to strive for economic development and growth, the need for improved infrastructure remains a key priority. CNBC Africa's Onyi Sunday recently caught up with Paul Biggs, Senior Partner at Trinity International, during the AFC Infrastructure Summit in Abuja, to discuss the challenges and opportunities in financing infrastructure development in Africa. Biggs highlighted the significant time it takes to complete infrastructure projects in Africa, stating that projects in Sub-Saharan Africa can take anywhere between three to over ten years to materialize. He emphasized the need to reduce this timeline to create more momentum in the sector and spur economic growth. One of the major obstacles to expediting infrastructure projects is the lengthy bureaucratic processes involved in securing financing and agreements. Biggs noted that it can take up to seven years to reach a financial conclusion for these deals, with the paperwork alone often spanning four to five years. This delays the actual development and construction phases of projects, further prolonging the overall timeframe. To address these challenges, Biggs underlined the importance of capacity building within host governments and the need for all parties involved in infrastructure projects to align on key priorities. By streamlining the documentation process and fostering better communication among stakeholders, the timeline for infrastructure development can be significantly reduced. Political uncertainty also poses a significant challenge to infrastructure development in Africa. With many countries experiencing changes in government leadership, the risk of agreements being reevaluated or renegotiated remains a concern. Biggs emphasized the importance of consistency in government approach and the need for proactive measures to mitigate risks associated with political transitions. Overall, the discussion with Paul Biggs shed light on the complexities involved in financing infrastructure projects in Africa and the steps needed to accelerate development. By fostering collaboration, improving regulatory frameworks, and enhancing government capacity, African countries can unlock their infrastructure potential and drive sustainable economic growth.