Local Sources of Financing for Infrastructure in Africa : A Cross-Country Analysis

Irving, Jacqueline; Manroth, Astrid

dc.creator	Irving, Jacqueline
dc.creator	Manroth, Astrid
dc.date	2012-03-19T19:09:34Z
dc.date	2012-03-19T19:09:34Z
dc.date	2009-03-01
dc.date.accessioned	2023-02-17T21:08:44Z
dc.date.available	2023-02-17T21:08:44Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090327160051
dc.identifier	http://hdl.handle.net/10986/4076
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/245081
dc.description	With the exception of South Africa, local financial markets in sub-Saharan Africa remain underdeveloped and small, with a particular dearth of financing with maturity terms commensurate with the medium- to long-term horizons of infrastructure projects. But as financial market reforms gather momentum, there is growing awareness of the need to tap local and regional sources. Drawing on a comprehensive new database constructed for the purpose of this research, the paper assesses the actual and potential role of local financial systems for 24 African countries in financing infrastructure. The paper concludes that further development and more appropriate regulation of local institutional investors would help them realize their potential as financing sources, for which they are better suited than local banks because their liabilities would better match the longer terms of infrastructure projects. There are clear signs of positive change: private pension providers are emerging in Africa, there is a shift from defined benefit toward defined contribution plans, and African institutional investors have begun taking a more diversified portfolio approach in asset allocation. Although capital markets remain underdeveloped, new issuers in infrastructure sectors-particularly of corporate bonds-are coming to market in several countries, in some cases constituting the debut issue. More than half of the corporate bonds listed at end-2006 on these countries' markets were by companies in infrastructure sectors. More cross-border listings and investment within the region-in both corporate bonds and equity issues-including by local institutional investors, could help overcome local capital markets' impediments and may hold significant promise for financing cross-country infrastructure projects.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 4878
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCESS TO BANK
dc.subject	ACCOUNTING
dc.subject	ASSET HOLDINGS
dc.subject	AVAILABILITY OF BANK CREDIT
dc.subject	BALANCE SHEET
dc.subject	BANK ASSETS
dc.subject	BANK BONDS
dc.subject	BANK CREDIT
dc.subject	BANK DEPOSITS
dc.subject	BANK FINANCING
dc.subject	BANK LENDER
dc.subject	BANK LENDING
dc.subject	BANK LOANS
dc.subject	BANKING SECTOR
dc.subject	BANKING SECTOR ASSETS
dc.subject	BANKING SYSTEMS
dc.subject	BILATERAL TRANSACTIONS
dc.subject	BOND ISSUES
dc.subject	BORROWER
dc.subject	BROAD MONEY
dc.subject	CAPITAL FLOW
dc.subject	CAPITAL FLOWS
dc.subject	CAPITAL MARKET
dc.subject	CAPITAL MARKET DEVELOPMENT
dc.subject	CAPITAL MARKETS
dc.subject	CAPITAL MARKETS DEVELOPMENT
dc.subject	CENTRAL BANK
dc.subject	CENTRAL BANKS
dc.subject	COLLATERAL
dc.subject	COMMERCIAL BANK
dc.subject	COMMERCIAL BANK LENDING
dc.subject	COMMERCIAL BANKS
dc.subject	COMMERCIAL CREDIT
dc.subject	CORPORATE BOND
dc.subject	CORPORATE BOND MARKETS
dc.subject	CORPORATE BONDS
dc.subject	CREDIT DISCIPLINE
dc.subject	CREDIT RATING
dc.subject	CREDIT RATINGS
dc.subject	CREDIT RISK
dc.subject	CREDIT RISK EVALUATION
dc.subject	CREDITORS
dc.subject	CREDITWORTHINESS
dc.subject	CREDITWORTHY BORROWERS
dc.subject	CURRENCY
dc.subject	CURRENCY MISMATCH
dc.subject	DEBT BURDENS
dc.subject	DEBT FINANCING
dc.subject	DEBT RELIEF
dc.subject	DEMAND FOR CREDIT
dc.subject	DEPOSIT
dc.subject	DEPOSIT MONEY BANK
dc.subject	DEPOSIT MONEY BANKS
dc.subject	DEPOSITS
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPING COUNTRY
dc.subject	DEVELOPMENT BANK
dc.subject	DEVELOPMENT FINANCE
dc.subject	DIVERSIFIED PORTFOLIO
dc.subject	DOMESTIC CAPITAL
dc.subject	DOMESTIC CAPITAL MARKETS
dc.subject	DOMESTIC DEBT
dc.subject	DOMESTIC FINANCIAL MARKETS
dc.subject	EMERGING MARKET
dc.subject	EMERGING MARKET ECONOMY
dc.subject	EQUITIES
dc.subject	EQUITY ISSUES
dc.subject	EQUITY MARKETS
dc.subject	EXPENDITURE
dc.subject	EXPORTERS
dc.subject	EXTERNAL DEBT
dc.subject	FINANCES
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL INSTRUMENTS
dc.subject	FINANCIAL LIBERALIZATION
dc.subject	FINANCIAL MARKET
dc.subject	FINANCIAL SECTOR DEVELOPMENT
dc.subject	FINANCIAL SYSTEM
dc.subject	FINANCIAL SYSTEMS
dc.subject	FISCAL POLICIES
dc.subject	FOREIGN CURRENCY
dc.subject	FUND MANAGERS
dc.subject	GOVERNMENT BOND
dc.subject	GOVERNMENT BOND MARKETS
dc.subject	GOVERNMENT BONDS
dc.subject	GOVERNMENT BORROWING
dc.subject	GOVERNMENT GUARANTEES
dc.subject	GOVERNMENT SECURITIES
dc.subject	GROSS DOMESTIC PRODUCT
dc.subject	HOLDINGS
dc.subject	HOLDINGS OF GOVERNMENT SECURITIES
dc.subject	INCOME LEVELS
dc.subject	INFLATION
dc.subject	INFLATION RATES
dc.subject	INFRASTRUCTURE DEVELOPMENT
dc.subject	INFRASTRUCTURE FINANCE
dc.subject	INFRASTRUCTURE FINANCING
dc.subject	INFRASTRUCTURE INVESTMENT
dc.subject	INSTITUTIONAL INVESTOR
dc.subject	INSTITUTIONAL INVESTORS
dc.subject	INSTRUMENT
dc.subject	INSURANCE
dc.subject	INSURANCE COMPANIES
dc.subject	INSURANCE COMPANY
dc.subject	INSURANCE POLICIES
dc.subject	INTEREST RATES
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL BANKS
dc.subject	INTERNATIONAL DEVELOPMENT
dc.subject	INTERNATIONAL FINANCIAL STATISTICS
dc.subject	INVENTORY
dc.subject	INVESTING
dc.subject	INVESTMENT ALLOCATION
dc.subject	INVESTMENT ALLOCATIONS
dc.subject	INVESTMENT ALTERNATIVES
dc.subject	INVESTMENT BANK
dc.subject	INVESTMENT CLIMATE
dc.subject	INVESTMENT INSTRUMENTS
dc.subject	INVESTMENT PORTFOLIO
dc.subject	INVESTMENT STRATEGY
dc.subject	INVESTOR BASE
dc.subject	ISSUANCE
dc.subject	LIQUIDITY
dc.subject	LOAN
dc.subject	LOAN MATURITIES
dc.subject	LOAN PORTFOLIOS
dc.subject	LOCAL BANK
dc.subject	LOCAL BANKS
dc.subject	LOCAL CAPACITY
dc.subject	LOCAL CURRENCIES
dc.subject	LOCAL CURRENCY
dc.subject	LOCAL FINANCE
dc.subject	LOCAL FINANCIAL MARKETS
dc.subject	LOCAL INFLATION
dc.subject	LOCAL INFRASTRUCTURE
dc.subject	LOCAL MARKET
dc.subject	LONG-TERM FINANCE
dc.subject	MACROECONOMIC CONDITIONS
dc.subject	MACROECONOMIC DATA
dc.subject	MACROECONOMIC POLICIES
dc.subject	MACROECONOMIC STABILITY
dc.subject	MARKET ANALYSTS
dc.subject	MARKET CAP
dc.subject	MARKET CONDITIONS
dc.subject	MARKET REFORMS
dc.subject	MARKET RETURNS
dc.subject	MATURITIES
dc.subject	MATURITY
dc.subject	MAXIMUM MATURITIES
dc.subject	MAXIMUM MATURITY
dc.subject	MONETARY FUND
dc.subject	MORTGAGE
dc.subject	MORTGAGE LOANS
dc.subject	MUTUAL FUNDS
dc.subject	NONPERFORMING LOANS
dc.subject	OUTSTANDING BANK LOANS
dc.subject	OUTSTANDING CREDIT
dc.subject	OUTSTANDING LOANS
dc.subject	PAYMENT OF INTEREST
dc.subject	PAYMENT SYSTEMS
dc.subject	PENSION
dc.subject	PENSION ASSETS
dc.subject	PENSION FUND
dc.subject	PENSION FUND ASSET
dc.subject	PENSION FUND ASSETS
dc.subject	PENSION FUNDS
dc.subject	PENSION SYSTEM
dc.subject	PENSION SYSTEM REFORMS
dc.subject	PENSION SYSTEMS
dc.subject	PENSIONS
dc.subject	POTENTIAL INVESTORS
dc.subject	PRICE RISK
dc.subject	PRIVATE BANK
dc.subject	PRIVATE CREDIT
dc.subject	PRIVATE FINANCING
dc.subject	PRIVATE INVESTMENT
dc.subject	PRIVATE INVESTORS
dc.subject	PRIVATE SECTOR CREDIT
dc.subject	PUBLIC BORROWING
dc.subject	REAL INTEREST
dc.subject	REAL INTEREST RATES
dc.subject	REGULATORY FRAMEWORKS
dc.subject	RETURNS
dc.subject	RISK EVALUATION
dc.subject	RISK PREMIUMS
dc.subject	SAVINGS INSTRUMENTS
dc.subject	SAVINGS RATE
dc.subject	SAVINGS RATES
dc.subject	SECURITIES
dc.subject	SECURITIES EXCHANGES
dc.subject	SHAREHOLDER
dc.subject	SHORT-TERM BANK DEPOSITS
dc.subject	SHORT-TERM FINANCE
dc.subject	SHORT-TERM GOVERNMENT SECURITIES
dc.subject	STOCK EXCHANGE
dc.subject	SUPERVISORY AUTHORITY
dc.subject	TELECOMMUNICATIONS
dc.subject	TERM DEPOSITS
dc.subject	TIME DEPOSITS
dc.subject	TIMELY PAYMENT
dc.subject	TRANCHE
dc.subject	TRANCHES
dc.subject	TRANSACTION
dc.subject	TRANSACTION COSTS
dc.subject	UNDERDEVELOPED CAPITAL MARKETS
dc.subject	VALUE OF COLLATERAL
dc.subject	VARIABLE RATES
dc.title	Local Sources of Financing for Infrastructure in Africa : A Cross-Country Analysis
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	Africa
dc.coverage	Africa
dc.coverage	Africa