Description
This panel will examine one of the major obstacles to the development of private equity in Africa: low liquidity. It will explore the role of the secondary market, risk mitigation mechanisms and blended finance structures in attracting more private capital. The discussion will begin with an analysis of the market situation before presenting concrete solutions.
Summary :
Mobilizing private capital for long-term infrastructure and growth projects in Africa remains challenging due to a thin project pipeline, regulatory hurdles, and limited exit opportunities. To address these barriers, panelists emphasize the need for innovative blended finance instruments, such as first-loss tranches, alongside programmatic investment strategies and improved local capital market development. Ultimately, successful investment requires building bankable projects from the early stages and fostering a robust exit culture that includes trade sales, secondary markets, and more dynamic local stock exchanges.
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