The 2020 Private Finance for Sustainable Development conference is focussed on the theme, Aligning finance with the SDGs.
PIDG CEO Philippe Valahu and GuarantCo Regional Director for North and West Africa Jules Samain have been discussing the use of risk mitigation instruments to provide comfort to pension fund and private institutional investors, a crucial factor in growing long-term local currency financing.
Low income countries continue to face a growing financing gap between infrastructure investments needed and the financial resources available for them. A key driver of this is the significant and largely unmet need to increase the volume and duration of local currency finance for infrastructure investment.
Most infrastructure projects in low-income countries earn revenues in local currency. Therefore, the significant foreign exchange risk associated with hard currency financing is eliminated when debt interest and principal are also payable in local currency.