The financing gap remains a recurring theme on the continent’s investment landscape.
Within the infrastructure sector alone, estimates of the financing needs currently they range from $100bn to $140bn p.a. with available resources only amouting to $50bn. We estimate that the cumulative additional level of debt needed for Capex over a ten years period will reach $250bn.
While the financing gap is slowing the continent’s development, liquidities have been amassing in international markets at unprecedented levels, without access to satisfying yields for investors seeking reasonable risk profiles.
Our long-time exposure to both African and European markets has convinced us that Private Debt would be a perfect tool. While it is estimated that Private Debt represents around $700bn worldwide, the market remains mostly European/North American and almost inexistent in Africa.
We have therefore decided to promote private debt solutions, that will seek to match the needs of project holders looking for long term financing in hard currencies, and investors looking for exposure to real assets in African markets, within a conservative and diversified environment.
At Belvedere Africa Partners, we believe that alternative sources of funding are needed to tackle the Africa Financing Gap.