COVID-19: Old Mutual on the need for private sector capital for African infrastructure

The current economic crisis triggered by the COVID-19 pandemic has brought to light the crucial need for private sector financing in Africa, as discussed by Paul Boynton, CEO of Old Mutual Alternative Investments, in a recent interview with CNBC Africa. Boynton highlighted the significant shift towards unlisted businesses globally and emphasized the importance of private capital as a means for companies to access the necessary funding. With a focus on managing liquidity and preparing for the future, private capital investment emerges as a viable solution for businesses navigating through these challenging times. Despite the uncertainty in the market, early signs of recovery are beginning to surface, signaling a potential path towards economic stability. The interview shed light on key themes such as the rise of private capital investment, the importance of strategic financial management in times of crisis, and the potential impact of asset depreciation post-COVID-19. Boynton underscored the advantages of private capital despite its liquidity constraints, noting that Africa presents unique opportunities for deploying private capital effectively. In terms of financial recovery, Boynton advised businesses to focus on managing costs, ensuring liquidity, and strategic planning for the future. Looking at the market landscape post-COVID-19, Boynton drew parallels to the financial crisis of 2009, emphasizing the resilience of markets in recovering from downturns. With early signs of market bounceback following reports of potential plateaus in death rates from the pandemic, Boynton expressed cautious optimism about the market's ability to bounce back. The unprecedented levels of fiscal stimulus injected into the economies of Europe and the US further bolster the prospects of economic recovery. As businesses grapple with the current economic challenges, private capital investment emerges as a beacon of hope for African economies seeking sustainable growth post-pandemic. The strategic deployment of private capital combined with prudent financial management practices could pave the way for a robust recovery in the region. While uncertainties loom large, the resilience of markets and the unprecedented fiscal support offer a glimmer of hope for the future.