Investing in developing countries
Some of the world’s largest asset management and private equity firms have joined together in a new initiative which may help to unlock billions of dollars for private investment in infrastructure in the developing world.
The new initiative, called the Global Infrastructure Facility (GIF), comes in the wake of recent data showing that private infrastructure investment in emerging markets and developing companies has dropped from US$186bn in 2012 to US$150bn last year.
Jim Yong Kim, president, World Bank Group, said: “We have several trillions of dollars in assets looking for long-term sustainable and stable investments. The real challenge is not a matter of money but a lack of bankable projects.”
This of course could be good news for private investmentors at both ports and terminals who by the nature of the industry make sustainable long-term investments because of long term leases and concessions.
The World Bank Group said that developing countries now spend about US$1tr per year on infrastructure, but in order to maintain current growth rates and meet future demands an additional investment of the same amount year on year would be needed through to 2020.
Apparently, the GIF will begin operations later this year in a pilot phase to road test new models to deliver complex public-private infrastructure in developing countries. A key emphasis will be placed on climate friendly investments as well as new ventures to bolster trade.
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