Infrastructure financing in Africa

Qiongfang Lu and Craig Wilson

Journal of International Financial Markets, Institutions and Money, 2024, vol. 91, issue C

Abstract: We explore current development and constraints on infrastructure financing in Africa. We examine how infrastructure development in African countries affects ownership and capital structure choices of private and public–private partnership infrastructure projects. Using data from 33 African countries over 17 years, our findings suggest that infrastructure projects in African countries with better infrastructure development tend to have more private investment, more long-term investment, and they tend to use more debt financing, including more commercial debt, and less equity in their capital structure. For the least developed African countries, where debt financing is scarce, equity investment is vital for infrastructure financing.

Keywords: Infrastructure financing; Public-private partnerships; Capital structure; Agency problems; Equity investment; Africa (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:91:y:2024:i:c:s1042443124000209

DOI: 10.1016/j.intfin.2024.101954

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