Business
East African Community looking into Private Equity to raise capital – and break aid dependency
East African Community partner states are looking into the possibilities of raising more money from international capital markets and in turn reduce donor dependency.
The plan is to use this capital for financing infrastructure projects to improve the East African Community’s competitiveness as an investor destination.
Most recently Rwanda managed to sell a US$400 million Eurobond which was quickly snapped up by investors. Kenya intends to raise US$1 billion before the end of this year.
During a round-table held on the theme ‘Building Private Equity and Private Capital Markets in Africa’, participants brainstormed about the challenges facing financing of development projects in Africa of which the East African Community is comprised.
Investors and policy makers met under the auspices of the Economic Commission for Africa and the World Economic Forum to identify and resolve the problems of attracting private equity.
According to a statement from the Economic Commission for Africa communications department, private equity could be Africa’s next development financing frontier and could mark an end to aid dependency.
However, the participants agreed there are still negative perceptions which portray Africa as “a risky continent in which to do business”. These perceptions have to be changed for the better.
