Rene Awambeng, the Founder and Managing Partner of Premier Invest, says development finance is not a comprehensive solution to Africa’s challenges.
He believes that while development finance plays a complementary role, it does not fully cater to Africa’s needs.
Development finance, as defined by the Council of Development Finance Agencies, involves the initiatives of local communities to promote, stimulate, and catalyse growth through public and private investment in physical development, redevelopment, and/or business and industry.
It is the act of contributing to a project or deal in a way that results in the project or deal materialising in a manner that benefits the community’s long-term health.
Premier Invest is an African-owned investment banking and advisory firm.
In a conversation with Bernard Avle on the Point of View on Channel TV, Mr Awambeng acknowledged and praised the efforts of development finance institutions across the continent.
However, he emphasised the limitations of such financing in addressing the challenge of funding Africa’s infrastructure.
He pointed out that these limitations are why Africa is facing struggles at various levels.
Mr Awambeng highlighted the dilemma faced by decision makers on how to support development.
“This development finance still today doesn’t meet the challenge of financing the burden of Africa’s infrastructure. It complements but it doesn’t meet that need. That is why we see the continent still struggling at various levels. Every year particularly in the last couple of years we’ve seen interest rates on the rise, we’ve seen inflation on the rise, we’ve seen demand for development and infrastructure on the rise, but we don’t have the available resources to be able to match that.”
“So, there is a conundrum for decision makers, for policy makers., how to support that development,” he stated.
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