In January 2018 African Heads of State at the African Union Summit endorsed the 5% Agenda, the partnership initiative between African governments and African institutional investors: African governments commit to providing a conducive environment for domestic institutional investors to invest in African infrastructure, and in return, African institutional investors commit to increase their portfolio allocations of total assets under management (AUM) to African infrastructure assets to 5% of AUM, including both infrastructure assets in development (greenfield assets) and in operation (brownfield assets). Through this ground-breaking 5% Agenda partnership between Africa‘s governments and institutional investors, African infrastructure assets can be developed
and structured to meet the investment criteria of institutional and other long-term investors under a new framework, the Institutional Investor Public Partnership (“IIPP”). The roadmap for implementing the 5% Agenda is set forth in the 2018 Investment for Project Development Benchmark (2018 I4PD), aimed at defining the required practical actions and business models (“deal terms”) required for achieving significant institutional investment in the development and finance of African infrastructure assets. The 2018 I4PD Benchmark results are based on the responses of institutional and other investors who are investing or potentially investing in African infrastructure assets, and project developers who could potentially develop high-quality infrastructure assets for institutional investors.
