AFC's Sanjeev Gupta talks bankable infrastructure projects in Africa

African Finance Corporation's (AFC) Executive Director of Financial Services, Sanjeev Gupta, recently shared insights on how to make African infrastructure projects more bankable at the AFC's infrastructure summit in Abuja. The continent has made strides in creating a world-class institution with global funding to support its vision. Gupta highlighted the importance of end-to-end participation by the AFC in infrastructure development, emphasizing the need for bankability to attract investors and ensure project sustainability. One of the major challenges hindering infrastructure projects in Africa is political instability in certain regions. Gupta acknowledged the significance of political dimensions in infrastructure projects, noting that governments are increasingly prioritizing infrastructure development to demonstrate their commitment to serving the public. However, peace and stability remain crucial for attracting global investors, and regions plagued by political strife face obstacles in securing funding for projects. When discussing bankable projects, Gupta emphasized the importance of projects delivering sustainable returns to investors over the long term. Bankability goes beyond having the necessary political and financial support; it also requires demonstrating demand, ability to pay, managing currency risks, and mitigating political uncertainties. Ensuring that projects can meet these criteria is essential for securing investment and driving successful infrastructure development across the continent. Addressing the challenges faced in providing basic infrastructure to rural communities, Gupta highlighted the scale and affordability issues that often arise. Limited accessibility and low usage volumes in rural areas present obstacles in justifying infrastructure investments, while affordability constraints in both rural and urban settings pose challenges in ensuring sustainable services for all. Governments play a crucial role in bridging these gaps through subsidies and supportive policies to align investor expectations with the realities of demand and affordability. In conclusion, Gupta underscored the need for collaborative efforts between governments, financial institutions, and private investors to enhance the bankability of African infrastructure projects. By addressing political, financial, and socio-economic challenges, stakeholders can unlock the continent's potential and pave the way for transformative infrastructure development that benefits communities across Africa.