Revolutionizing Infrastructure Financing in Africa: Insights from Tidjane Thiam at Africa50 Infra Forum

2023-07-07 16:06:33

Lome (© 2023 Afriquinfos)- The first edition of the “Forum Infra for Africa bankable, scalable & replicable” organized by Africa50 (investment platform launched by African States and the AfDB -African Development Bank-) was held in Lomé (Togo) these July 3 and 4. Former Managing Director of Credit Suisse and Prudential PLC, the Franco-Ivorian Tidjane Thiam delivered original proposals for sustainable infrastructure financing in Africa. Proposals that break the codes of the usual orthodoxies in which the management of state budgets in Africa is locked.

This is one of the interventions that marked the holding in Lomé of the 1st edition of the “Africa50 Infra Forum”. In front of a large audience of financiers, investors and political decision-makers from different regions of the continent, Tidjane Thiam noted that the financing of infrastructure “remains a key step in the modernization of African states, because this financing has significant potential for job creation».

«The financing of the modern economy comes mainly from the capital markets or life insurance companies, pension funds, etc., basically from private equity. Retirement and pension funds are essential today and in the future», insisted the former Minister of Planning and Development in Côte d’Ivoire. “Africa has a historic opportunity on these types of financing, especially since it enjoys a predominantly young population. It is a window of opportunity that Africa must seize. I salute the efforts made by Africa50 for the endogenous financing of infrastructure in Africa“, further encouraged the first black leader of a company listed on the London Stock Exchange.

From private equity to innovative solar financing in Africa

«Innovation is essential when it comes to infrastructure financing. We need to adapt our needs to our direct realities. Above all, we need long-term investors. Capital from ‘private equity’ is an approach to be encouraged. We must also develop our ability to mobilize local savings“, explained and defended T. Thiam (responsible for Freedom Acquisition 1 Corp) during a panel which particularly caught the attention of the Togolese President, Faure Gnassingbé.

«FDI (Foreign Direct Investment) is better attracted when local savings are mobilized alongside to launch Local Champions. We must be the first to believe in our economies in Africa. We must overcome skepticism, rely heavily on our human resources“, also supported T. Thiam, on the basis of his professional career in international high finance.

«Leadership is also important for building resilience into any development process. This character trait is equally valid for young entrepreneurs as it is for states. Renewable energies such as solar are now essential. Energy production must be further decentralized. It is the cheapest renewable energy to exploit nowadays on the African continent. Its exploitation will be a revolution in Africa. We can do better in this area, it is a deep conviction that I carry. Like Marcus Garvey or Bob Marley, ‘We need to free our minds’“, finally hammered the one who is a member of the Board of Directors of Kering (French luxury conglomerate), and connoisseur of the Rwandan financial world.

Africa50 was born in 2017 to boost infrastructure financing in Africa. Its funding of around $6.6 billion to date covers several countries and areas of activity. ” Our vision is to have an impact on the development of Africa“, recalls Alain Ebobissé (General Manager of Africa50) in this regard.

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