Tawia: Africa needs alternative financing for infrastructure growth

Sewu-Steve Tawia, the Founder & CEO of Asime Partners, is a prominent voice advocating for alternative financing as a critical component for driving infrastructure development across Africa. In a recent interview with CNBC Africa's Akin Obakeye at the Africa Prosperity Dialogues in Accra, Ghana, Tawia emphasized the urgent need for innovative financial instruments and policy harmonization to attract local investors to the region. Tawia highlighted the abundance of bankable projects in Africa that require additional support through feasibility studies and capital for transactional advisors to make them more attractive to key stakeholders such as the African Development Bank, World Bank, AFC, and other financial institutions. He stressed the importance of structuring these projects well to make them appealing for investment in the continent's infrastructure. One key aspect Tawia pointed out was the potential for smaller transactions in Africa's investment ecosystem, particularly in building data infrastructure like compute and data centers. This development could enhance access to digital infrastructure across the continent and catalyze further investments to scale up these projects. Additionally, Tawia noted the importance of listing projects across Africa, aligning with initiatives like the African Continental Free Trade Area (AfCFTA) to promote a unified market on the continent. However, he highlighted the challenges stemming from the lack of policy harmonization that could hinder local and global investors from participating in these ventures. Addressing the need for policy synchronization, Tawia underscored the importance of harmonizing investment promotion agencies across Africa to provide a conducive environment for local investors. He emphasized the necessity of creating trust and reliability for investors within the continent, eliminating the requirement for companies to register in foreign domiciles to attract capital. Tawia cited examples from countries like Tunisia, Rwanda, and Nigeria, which have instituted supportive policies for startups and angel investors, demonstrating the need for Ghana to follow suit in generating a more favorable investment landscape. Tawia's insights extended to the realm of industrialization in Africa, where he discussed unlocking pension fund assets and creating a unified crowdfunding platform to mobilize capital efficiently. By leveraging pension funds, private wealth, and family offices in a tax-efficient manner, Tawia believes that Africa can harness significant resources for infrastructure development. He advocated for a Pan-African crowdfunding mechanism to democratize investment opportunities across the continent, emphasizing the importance of political will and policy alignment to execute these strategies effectively. In conclusion, Tawia's comprehensive analysis underscores the critical role of alternative financing in unlocking Africa's infrastructure potential. With a focus on innovative financial instruments, policy harmonization, and mobilizing local investment, Africa stands poised to accelerate its development trajectory and foster sustainable growth in the infrastructure sector.