Advisory at Halo Group Africa
Empowering Infrastructure Success in Africa
Halo Group provides expert advice, support, and resources to help governments enhance the commercial viability of infrastructure projects. By mitigating political, currency, and regulatory risks, we significantly improve project bankability.
Africa's Infrastructure Investment Landscape
Africa's infrastructure project pipeline is valued at $2.5 trillion for projects slated for completion by 2025, with potential growth to $11 trillion over the next decade. While raising this capital is challenging, it presents a significant opportunity for transformative development.
Overcoming Funding Challenges
Only 10% of African infrastructure projects secure funding, with 80% failing at the feasibility and business-plan stages. Investors face a shortage of bankable projects that meet risk-return expectations. Even stable sectors like energy, with proven high returns, struggle to reach financial close due to weak management and unclear delivery plans.
Why Projects Fail
Several factors contribute to project failures:
Insufficient financial resources for robust feasibility studies and business plans lead to rejections.
Developers and governments often lack the capacity to assess technical and financial risks for large-scale projects.
Poor planning, technical design, and execution lead to weak delivery programs.
Weak country balance sheets and limited access to affordable financing, such as mortgages for off-takers, hinder mega-projects.
Misconceptions that foreign investors should bear all financial risks ignore the need for shared risk and reward, as project failures are common.
Insufficient financial resources for robust feasibility studies and business plans lead to rejections.
Developers and governments often lack the capacity to assess technical and financial risks for large-scale projects.
Poor planning, technical design, and execution lead to weak delivery programs.
Weak country balance sheets and limited access to affordable financing, such as mortgages for off-takers, hinder mega-projects.
Misconceptions that foreign investors should bear all financial risks ignore the need for shared risk and reward, as project failures are common.
Unlocking Private-Sector Investment
Private-sector finance is abundant, but investors struggle to find viable African projects. While African investment is rising, Direct Foreign Investment is critical for accelerated growth. Halo bridges this gap by addressing key factors to increase the percentage of funded projects.
Key Factors for Project Success
Halo's expertise focuses on critical elements to enhance project viability:
Attractive Risk-Return Profiles
Private-sector investors prioritize projects with predictable, stable revenues (e.g., tariffs, off-take agreements) and rapid profitability.
Optimized Project Structures
PPP, BOT, or JV models, with legal protections, streamlined permitting, and land acquisition, reduce risks and enhance commercial viability.
Political Risk Management
Halo's deep understanding of African markets mitigates political risks often misunderstood by foreign investors.
Currency Risk Mitigation
We address currency fluctuations, critical when funds are sourced in dollars but revenues are in local currency.
Credible Off-Takers
Halo structures agreements to guarantee revenues, maximizing project outcomes.
Revenue Security
Structures like direct billing, special purpose vehicles, and ring-fenced revenues ensure debt repayment.
Sustainable Project Pipelines
A steady flow of quality projects boosts investor confidence, exit options, and track record. Halo delivers a strong pipeline of investment-ready projects.
Why Choose Halo?
With extensive experience and meticulous planning, Halo equips investors to navigate the full spectrum of risks associated with African infrastructure projects, ensuring sustainable success and impactful outcomes.