Overcome Project Finance Challenges and Become Bankable

I am halfway through my first day at work in 2016 and there is reason to be excited about the coming year given that Foreign Direct Investment streams into Sub-Saharan Africa actually rose 5% in 2015, riding out challenges such as Ebola, falling commodity prices and regional conflicts. Having said that Africa's investment needs clearly remain enormous.

Even as Banks around the world have become nervous about lending, there is no scarcity of capital. There are a host of new sources for development funding available to private developers, like opportunity funds, REITs (real estate investment trusts), sovereign wealth funds and hedge funds, pension consortia and family offices (private companies that manage investments for a single family).

On the other hand there is still a shortage of bankable projects from around Africa. In my view there are two factors that are contributing to creating this shortage. First one being slow regulatory reforms by government and the second being lack of proper project preparation by developers.

I feel that progress is slow around the continent with regards to the ability of government to identify and make major policy and regulatory reforms, that will create enabling environment for private investment and to spurn new market areas.

Furthermore large projects often require complex feasibility studies and expert transaction advice, which usually costs between 7 and 10 percent of the project’s final investment. This preparation finance is not readily available from stakeholders within Africa. And lack of preparation makes it harder for private investors to assess risk.

And there are very few private investors that will pay the full project cost and take on the long-term risk associated with greenfield projects (new projects without any track record or operating history).

At Ovid Capita we understand there are difficulties of getting projects funded in Africa. However with our experience, methodology and Industry contacts we know how to effectively achieve results and make it easier to obtain the capital you need.

Our team has extensive knowledge and over 50 years of combined experience within the finance and business sector especially in packaging and optimising projects for funding. We are also able to source appropriate funding/financing for projects through our network of business partners, funders, financiers and sector experts.

Our goals at Ovid Capita in 2016 are two-fold;

Firstly to keep assisting our clients with technical feasibility studies and other broader set of expertise and seed assets required to make their projects bankable.

And secondly through our research to find new ways for the public sector to improve underlying investment conditions, which will catalyse financing from different sources, including the private sector.

Work with us

Put our statements to the test by contacting our team today. This will be a perfect way to get acquainted with what we do. Simply visit our website at www.ovidcapita.com and click on the contact now button located at the top right-hand corner of the page.

If you are having difficulty raising capital for your project, then you will want to find out without delay if we can do for you what we are doing for many others. So please go to the website and contact us and we will start serving you immediately.

Best wishes in 2016