Market Entry by Leveraging Export Credit Financing to Succeed in African Infrastructure Projects

It is undisputed that the African continent holds great development potential for international investors. Their success in delivering and capitalizing on them has, however, repeatedly been set back by systemic risks, such as political and economic instability, and severe lack of funding. Despite this, foreign investment remains a vital part of Africa’s path to development. Infrastructure, in particular, has one of the greatest potential to act as a platform for growth. This chapter describes one of the instruments to mitigate risks in infrastructure investments in Africa: export credit-based projects. INZAG Germany GmbH, a company based in Wiesbaden, has developed a business model focused on optimal use of the investment policy framework for foreign construction companies in Africa. This chapter presents the details and benefits of this approach, not only for African countries and other construction companies, but also for the many foreign investors and institutions involved.