DFC: There are more bankable projects in Africa

Nisha Biswal, the Deputy CEO of the Development Finance Corporation, highlighted the importance of investing in bankable projects in Africa during a chat with CNBC Africa at the U.S.-Africa Business Summit. With a global portfolio of approximately 42 to 43 billion dollars, the DFC's largest regional exposure is in Africa, with almost 11 billion dollars invested across the continent. The corporation aims to continue growing its presence and focus on financing sectors such as infrastructure and energy in low and middle-income countries. Biswal emphasized the need for projects to be economically viable long term and highlighted the significance of investing in ecosystems surrounding these projects. She mentioned that the DFC is present throughout the African continent, with some limitations based on income classifications. The corporation has made significant investments in sectors like infrastructure and energy, including renewable energy projects in countries like Kenya, Mozambique, and Zambia. Additionally, the DFC has supported digital infrastructure and is exploring opportunities in rail and road projects. Biswal also mentioned the role of the DFC in supporting African enterprises and private sector growth through direct support, on-lending, and funding. One of the key projects announced by Biswal was the investment in the power sector in Sierra Leone, which aims to expand the country's power plant and improve energy security. The DFC's commitment to supporting projects that foster economic growth and enhance trade and tourism in Africa was evident in its investments in various key infrastructure projects across the continent. Despite concerns about potential changes in the U.S. administration and the impact on relations with Africa, Biswal assured that the DFC's trajectory and engagement with African partners would continue irrespective of the election outcome. She emphasized the bipartisan support enjoyed by the DFC as an institution and its commitment to enduring relationships with African entrepreneurs. Discussing the bankability of projects in Africa's infrastructure space, Biswal acknowledged the challenges faced by entrepreneurs in accessing finance for their projects. While there is a perception of a lack of bankable projects, she noted a growing trend in more shovel-ready projects in Africa. However, she stressed the importance of ensuring the long-term economic viability of projects by investing in the ecosystem surrounding them. This approach involves looking beyond standalone investments and considering the broader infrastructure and support needed for projects to succeed. Biswal highlighted the significance of partnerships with institutional investors and government agencies to create a supportive ecosystem for bankable projects to thrive, citing examples like the Lobito Corridor project where various entities are collaborating to boost infrastructure development and private enterprise along the corridor.