TRILLION DOLLAR INVESTMENT FRAMEWORK

Overview | A 360o approach | Next steps

Overview

The Trillion Dollar Investment Framework in support of the AfCFTA can be seen as the main outcome of the investor meetings organized by the AfroChampions Initiative (Nairobi Boma on infrastructure financing and deployment and Kigali Boma on industrialization and green growth). These exchanges, which voluntarily brought together actors with very diverse backgrounds - project developers, financing institutions including banks, pension funds and sovereign wealth funds, and public authorities - highlighted the main challenges of project financing in Africa: sourcing and vetting projects, as information on opportunities is often lacking on the continent; need to build larger opportunities, at least on a regional scale, to attract foreign investors; need for larger volumes, looking beyond traditional actors and donors to new sources of financing; need to be more demanding in terms of project monitoring and execution.

It is in order to propose a concrete response adapted to the continent that the Trillion Dollar Investment Framework for the AfCFTA has been designed. The objective is to support the deployment of high-impact projects, particularly in the field of infrastructure and industry, so that the African common market become soon a reality. Energy, transport, connectivity and agriculture are among the priorities defined. The method: a rigorous project selection and monitoring process, combined with a fund bringing together African and foreign investors and a mechanism for monitoring public policies implementing the AfCFTA, which are essential for building a good investment climate on the continent. More details on the Trillion Dollar Investment Framework in this overview for the FTAA.

A 360o approach

Sourcing projects

Investment vehicle

Monitoring of public policies

Next steps

The AfroChampions initiative plans to present the first validated projects for the Trillion Dollar Investment Framework for the AfCFTA by the end of the first semester of 2021 - a strategic period during which the AfCFTA Agreement will become effective. At this stage, the opportunities that have caught our attention are in the transport and logistics sector. The AfroChampions initiative is working with a range of partners and financiers on this issue, including a group of sovereign wealth funds committed to the continent and the firm Accenture, which has been asked to structure the fund and define the investment strategy.