Alexander Forbes: How Africa can bridge the growth deficit in real assets
Tabling his Medium Term Budget Policy Statement last week, South Africa's Finance Minister Tito Mboweni said that Infrastructure is at the centre of the plan. According to Alexander Forbes’ David Moore, Africa requires annual investment of more than $100 billion in infrastructure and real estate. He joins CNBC Africa to discuss real assets, from an African perspective.
Wed, 04 Nov 2020 12:19:03 GMT
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AI Generated Summary
- The pressing need for over $100 billion annual investment in infrastructure and real estate in Africa highlights the significant growth deficit in real assets across the continent.
- The mobilization of private sector pension capital into real asset investments is crucial for driving sustainable development and addressing energy and power deficits.
- Public-private partnerships and effective regulatory frameworks play a key role in attracting capital and structuring investment opportunities for long-term returns in Africa.
Africa is rich in resources, but when it comes to real assets such as infrastructure and real estate, the continent faces a significant deficit. According to David Moore of Alexander Forbes, Africa requires an annual investment of over $100 billion in infrastructure and real estate. This requirement stems from the dire energy and power deficit across the continent, making the need for increased capital allocation in real assets critical. In a recent interview with CNBC Africa, Moore discussed the challenges and opportunities in mobilizing capital for real asset investments in Africa. The primary focus was on how to attract private sector pension capital into infrastructure projects, ensuring both sustainable returns and positive environmental and social impacts. With the infrastructure development at the core of South Africa's economic plans, the discussion shed light on the role of public-private partnerships and regulatory frameworks in driving real asset investments. Despite the challenges, Moore expressed optimism about the appetite among institutional investors to fund key infrastructure projects in Africa. He emphasized the importance of structuring investment opportunities appropriately to attract capital successfully. While markets remain volatile, the long-term return potential of real asset investments presents an attractive proposition for pension funds and institutional investors. By fostering collaboration between the public and private sectors and leveraging existing pools of capital, Africa can bridge the growth deficit in real assets and pave the way for sustainable development across the continent.