The COVID-19 pandemic unveiled huge investment needs in Africa. Yet risk aversion continues to significantly impair private investment, leading to a dearth of bankable projects. CGD experts have identified the problem of limited financial resources that are being dedicated to developing strong feasibility studies, analysing market prospects and developing viable business plans. Building on the model and experience of the European Union (EU) in project preparation within its own borders, Mikaela Gavas and Samuel Pleeck put forward a proposal for an Accelerator Hub—a single access point for targeted support to identify, prepare and develop investment projects—pooling and convening the relatively small-scale technical assistance programmes of the European development finance institutions to help African businesses develop bankable projects.
The proposal was received with enthusiasm by a variety of African partners and trade associations, as well as corporations and development finance institutions including the association of 15 European Development Finance Institutions (EDFI). The Dutch Development Finance Institution, FMO have structured a proposal for a technical assistance facility based on the Accelerator Hub.
CGD is continuing to engage in further discussions on the practicalities of design and implementation of the Accelerator Hub with European development financial institutions and the European Commission.
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