Ghana: Mobilising capital including innovative financing in support of infrastructure development and economic growth

Country
Ghana
Client
German Ministry of Finance, GIZ
Date
2020
Sector
Economic and private sector development

project description

The purpose of the assignment was to identify, prioritise and develop possible infrastructure projects for private sector funding in Ghana with particular consideration given to employment creation. The team identified opportunities and initiated processes, including requirements to adjust legal and administrative framework conditions, in order to mobilise private capital for infrastructure development through innovative financing sources. 

The work was carried out through a combination of desk and field research, consultation, and through building a collaborative relationship with the Ministry of Finance Financial Services Division (FSD), as well as other relevant stakeholders. Specifically, the team had the following objectives: 

  • Conduct a thorough analysis of the existing infrastructure, including relevant information on background macro data (e.g. sector, scale and extent of infrastructure usage, management arrangements)
  • Identify the national infrastructure investment vision and strategy as well as the regulatory and administrative frameworks, and submit of proposals for any adjustments in line with the Ghana Beyond Aid strategy and taking into account international standards including factors such as good infrastructure governance, value for money principle, lifecycle approach, affordability/fiscal stability
  • Lead a consultation process with relevant government and public sector entities and other stakeholders with respect to infrastructure needs as well as with potential private investors and national and international financiers
  • Identify national infrastructure projects and a project pipeline for economic transformation with a particular consideration of employment generation
  • Provide advice to the government and responsible public sector entities in the development of infrastructure projects analysis and prepare a feasibility study on how national and international private sector funds can be channelled to infrastructure investment projects including innovative sources of financing and public private partnerships
  • Undertake and managing the necessary due diligence, financial modelling, risk analysis and mitigation in the structuring of loans, equity investment, guarantees, loans or other forms of debt.

services provided

  • Conducted a thorough analysis of the existing infrastructure in Ghana 
  • Identified the national infrastructure investment vision and strategy and provided recommendations for improvement
  • Led a consultation process with key stakeholders (including investors) to understand the country’s infrastructure needs
  • Identified national infrastructure projects and elaborated a project pipeline with particular focus on economic transformation and employment creation
  • Supported the government and responsible public sector entities in the design of infrastructure projects
  • Conducted feasibility studies on how national and international private sector funds could be leveraged to fund infrastructure projects.