Urban Finance Webinar 3- Achieving Investor-ready Sustainable City Projects



This webinar focuses on the attributes of a good project from the perspective of investors. Our two panelists explain how they perceive bankable projects and what processes city governments need to adopt to attract more investors for their projects.


Moderator:

Wadzi Katsidzira- Manager, Global Development Incubator

Speakers:

1. Hackim Abdul- Senior Associate, Africa Public Sector, Citigroup

2. Ben Mokheseng-Infrastructure Finance Manager, Development Bank of Southern Africa (DBSA).




Summary:


This webinar had an African focus delving into understanding the definition of a bankable project from the perspective of 2 investors.


The key insights that crystallized from this webinar were the need for better preparation of projects at the local level, their alignment to the National Policies, quality feasibility studies, and frameworks in place for the project to be predictable. In Africa, the infrastructure gap is characterised by a lack of pipeline of bankable projects rather than a lack of funding, therefore the main takeaway for the city governments is to ensure that they have good credit stories that would elicit interest from investors.


Key Highlights

  • Definition of Bankability-The projects must be predictable; risks have to be taken into considerations, and all stages have to be well-defined.

  • Project Preparation-City authorities should develop frameworks and have standardized processes and material which would improve transparency. Standardised processes can help tackle one of the key challenges of poor quality of feasibility studies. According to a report by McKinsey, Solving Africa’s infrastructure paradox, there is an 80% drop out rate of infrastructure projects at the feasibility/planning stage.

  • Data for Dollars – African cities need to build good credit stories to be able to raise capital.