In March 2014, Liberia announced that there were two suspected cases of Ebola in Lofa and Nimba counties. Six months later, Ebola had spread to 14 of the 15 counties of the country and a state of emergency had been declared. By the time the World Health Organization (WHO) announced that Liberia was officially ‘Ebola free’ in May 2015, more than 10,000 Liberians had contracted the virus and the economic fortunes of the post conflict nation had faced a significant downturn.
Editor's Note: This article originally appeared in the August 2016 edition of Into Africa (PDF), a publication of Capital Markets in Africa. An abbreviated version is reprinted here with their permission.
Africa is widely acknowledged as being the ‘preeminent emerging markets investment destination’ attracting global investors across all sectors. Investors seeking relatively higher risk-adjusted returns are appraising opportunities across the consumer sector, services and infrastructure.
However, one of the key constraints to economic growth in Africa is the lack of adequate and well-maintained infrastructure. Various studies on the infrastructure deficit have been carried out by multi-lateral agencies, most notably a World Bank study which revealed that the annual financial requirement for infrastructure in Sub-Saharan Africa (SSA) is about US$93 billion a year for both capital expenditures and maintenance. To finance this, only US$45 billion is being mobilized, two-thirds paid for by African governments and citizens, 8% by multilateral and bilateral donors and the rest by the private sector in emerging economies. There is therefore an estimated funding gap of US$50 billion a year.