CAPE TOWN - The economic environment for private equity investments in Africa is promising compared to a few years ago when the global economy was in a downturn, and this improvement in economic conditions is encouraging and reflects Africa’s status as the world’s fastest urbanising continent.
This is according to Romain Py, investment director and head of transactions at African Infrastructure Investment Managers (AIIM) who was at the African Utility Week currently taking place at the Cape Town Convention Centre.
The rapid urbanisation on the continent is underpinned by a strong demand for infrastructure, which the African Development Bank (AfDB) estimates to be around $170billion, or more than R2 trillion, a year for the next decade.
Py added that to ensure investments that deliver true value, however, African governments need to be educated on how to be attractive investment destinations.
On the other hand, investors need to be made aware of how to manage and reduce perceived and actual risks.