Investors for Resilience
The African Union Development Agency (AUDA)-NEPAD Heads of State and Government Orientation Committee (HSGOC) endorsed an initiative to facilitate institutional investor and private sector participation and investment in essential AUDA-NEPAD and African infrastructure projects at the Dakar Financing Summit, through the creation of the Continental Business Network (CBN).
The CBN is dedicated to increasing the participation of African institutional investors and the private sector in Programme for Infrastructure Development in Africa (PIDA) and AU infrastructure and industrial investment projects.
This will be accomplished by working with domestic pension and sovereign wealth funds, project developers, governments and infrastructure investors and financiers; to increase the participation of the African and international institutional investment community and private sector in the policy and project design, construction and maintenance of Africa’s infrastructure. The CBN will also develop and advise on bringing bankable PIDA and AU supported infrastructure projects to financial close.
24 Years of Experience
What Does the CBN Do?
- Serves as a key institutional investor and private sector engagement platform for AUDA-NEPAD and the African Union Commission (AUC) and Heads of State and Governments on PIDA and infrastructure projects.
- Builds capacity in institutional investors and private sector developers, so that they can more successfully bid for infrastructure related contracts and transactions.
- Works with the African public sector to help it engage the institutional investment community and the private sector, through best-practice and transparent procurement processes, and well-defined policies, online slots including unsolicited bids.
- De-risks, promotes and publicizes African infrastructure as an investable asset class.
- Develops de-risking initiatives and instruments to crowd in private capital to African infrastructure, and unblocks perceived bottlenecks caused by poor information flow.
- Facilitates co-investment partnerships with the domestic and global institutional infrastructure investment community.
- Advocates for the African institutional infrastructure investment community and project developers.
Trade enabling infrastructure will be a key focus of the CBN, with the goal being to match and support domestic and inward manufacturing investment projects that increase trade, Africa’s competitiveness, job creation and projects that support the implementation and goals of the African Continental Free Trade Area (AfCFTA). AUDA’s agenda on sustainable development and energy, Move Africa and Grow Africa are directly relevant to the work of the CBN.
By building capacity, the CBN will enable African institutional investors and the private sector to respond to the improved investment climate for infrastructure, energy, manufacturing and industrial AfCFTA supportive projects. It will serve as a key private capital engagement platform for AUDA-NEPAD and the AUC to engage with institutional investors and the private sector on PIDA, infrastructure investments and the AfCFTA projects.
CBN DECISION ON THE REPORT OF HEADS OF STATE AND GOVERNMENT ORIENTATION COMMITTEE (HSGOC) ON NEPAD; Doc. Assembly/AU/9(XXIV): 26–27 June 2014 Malabo, EQUATORIAL GUINEA
WELCOMES IN PARTICULAR the Africa50 initiated by the AfDB as an investment platform designed significantly to narrow the infrastructure financing gap; the set-up of the Continental Business Network (CBN) on Infrastructure Financing coordinated by NPCA and the Summit organizing partners; improvement measures to promote policy certainty, legal and fiscal stability towards enabling environment; the continued political determination of African Leaders to support the implementation of high impact national and cross-border projects and infrastructure project preparation and financing for the projects showcased at the Summit as a first step towards implementing the PIDA priority action plan by 2020;
REAFFIRMS the strong linkage between the Presidential Infrastructure Champion Initiative (PICI) and the priority projects presented at the Dakar Financing Summit as mutually reinforcing and impetus to further accelerate PIDA implementation. URGES Member States, development finance institutions and partners to increase funding support for infrastructure project preparation, especially the NEPAD Infrastructure Preparation Facility (IPPF) hosted by the African Development Bank; REPORT OF THE CHAIRPERSON OF THE NEPAD HEADS OF STATE AND GOVERNMENT ORIENTATION COMMITTEE (HSGOC) Outcomes of the Dakar Financing Summit for Africa’s infrastructure In the context of Dakar Agenda for Action, the 31st HSGOC particularly welcomed the Africa50 initiated by the AfDB as an investment platform designed significantly to narrow the infrastructure financing gap, the setup of the Continental Business Network (CBN) on Infrastructure Financing coordinated by NPCA and the Summit organizing partners, improving the enabling policy and legal environment to attract investments – all in support of the implementation of high impact national and cross-border infrastructure projects. The Session reaffirmed the strong linkage between the NEPAD Presidential Infrastructure Champion Initiative (PICI) and the projects presented at the Summit as mutually reinforcing and complementary to accelerate PIDA implementation.
Mobilize pension and sovereign wealth funds under the 5% Infrastructure Investment Agenda (or the 5% Agenda).
Advocate for the G7, G20 and BRICS to commit 1% of their pension and sovereign wealth assets to bankable African infrastructure investments.
Identify issues that make selected projects unattractive to the private capital, and articulate the needs of institutional investors and the private sector to project sponsors.
Work with governments and developers to repackage projects to better attract institutional investors.
Engage necessary technical assistance to push projects towards financial close.
Monitor progress and engage PICI, HSGOC and related AUC political support.
CBN is administered and coordinated by a dedicated Secretariat.
The Council comprises African institutional investment leaders and drives and articulates the CBN mandate.
CBN Steering Committee
An inclusive network representing organized private sector and investor groupings working in Africa, who contribute to CBN Working Groups initiatives and promote CBN policy and projects across ecosystems.
Development Finance Institutions (DFI’s), development partners, research institutions and partners.