Private Investment Option for De-risking Infrastructure Projects in Sub Saharan Africa

Executive Summary

This brief opines that stimulating private investments in infrastructure projects in Sub- Saharan Africa (SSA) require addressing the associated risks that continue to dissuade private financiers and impede growth of industrialization. It is estimated that approximately 80% of initiated projects fail to take off in the region. Key contributing factors include weak synergies between private and public stakeholders in green financing; biased credit risk perceptions; dollarization of projects; and nature-induced investment risks. The brief concludes that the perils shrink the financiers’ fiscal space to fund the schemes. It recommends revitalizing public-private green financing approaches; forestalling discriminating credit risk perceptions; de-dollarization of infrastructure projects; and adopting project-based carbon contracts for- difference to deflate nature-induced investment risks and political uncertainties.