Africa’s project development industry is developing rapidly, but much needs to be done to ensure not only an effective system, but a competitive one. To start, sufficient capital to invest in greenfield projects and develop them to bankability is essential, but African developers also need to possess certain skills and structures in order to credibly deliver a project.
“In Africa, project development is a lengthy process and the cost increases with time. Project development vehicles could be following a fund structure similar to venture capital as long as it has sufficient capital,” says Tas Anvaripour, CEO of Africa50, one of Africa’s largest and most important infrastructure delivery initiatives.
However, the most important issue, she says, is staffing these vehicles; “Staff should have deep understanding of African markets, a cultural sensitivity, but also know when the project is moving from early stage to financial close what the requirements are of the multiple parties involved, including strategic partners, financiers both commercial and DFIs, more and more ECA players and equity investors.
