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preliminary steps and general market know- how are vital factors which in uence and shape a project’s  nancing structure.
One must also remember that DFIs generally provide  nance in hard currencies. As
such, the currency risk associated with the repayment of these amounts is usually borne by the local governments, project companies and state-owned entities. In Africa in particular, funding is usually US dollar based, which results in excessive additional hedging costs.
Given that developing markets are the  rst to be a ected by any market volatility, it is crucial that there is not an overreliance on DFI funding where local currency funding is available. DFIs should act as an aid to private sector investments from, local commercial banks and pension funds.
Similarly, the use of institutions such as the New Development Bank (which has already started extending loans in local currencies) must be considered in an attempt to mitigate the potential adverse e ects of borrowing in foreign currencies.
Creating the superstructure – Africa 2063
In response to a continent whose growth is still mainly premised on natural resource exploitation and exports which do not maximise local retention of wealth, the African Union has developed Agenda 2063 - a strategic framework for the socio-economic
transformation of the continent over the next 50 years. Agenda 2063, states its aspirations for the ‘Africa we want’ as:
1. A prosperous Africa based on inclusive growth and sustainable development
2. An integrated continent, politically united based on the ideals of Pan Africanism and the vision of Africa’s Renaissance
3. An Africa of good governance, democracy, respect for human rights, justice and the rule of law
4. A peaceful and secure Africa
5. An Africa with a strong cultural identity,
common heritage, values and ethics
6. An Africa, whose development is people- driven, relying on the potential of African
people, especially its women and youth,
and caring for children
7. Africa as a strong, united, resilient and
in uential global player and partner
Understandably, Agenda 2063 emphasises the need to connect Africa to the rest of the world through world-class infrastructure. In this regard, the role of DFIs in achieving these goals cannot be understated.
The challenge of addressing Africa’s infrastructure gap not only requires collaboration between the various stakeholders, but moreover, it requires
an understanding and appreciation for facilitating inclusive socio-economic transformation and development of African economies towards a state of self-reliance.

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