Prosper Africa on plans to increase US trade & investment across the continent

Prosper Africa, a key player in driving US investment into Africa in collaboration with various stakeholders, is working to leverage global assets to bridge the gap for sustainable investment on the continent. Cameron Khosrowshahi, Senior Investment Advisor at Prosper Africa, highlighted the crucial role of engaging new actors, such as the 400 trillion in global assets, to unlock opportunities in emerging markets. With the US pension community alone boasting assets in the range of 30 trillion, a small percentage of these funds could significantly impact climate and sustainable investments in Africa. The initiative involves ongoing dialogues with asset owners to educate them about the risks and opportunities on the continent, aiming to increase investments in real economies. The strategy focuses on remaining sector-agnostic to allow investors to diversify across various sectors while steering them towards opportunities that balance financial returns with social and environmental impacts. Khosrowshahi emphasized the importance of investing in sectors like resilient infrastructure, clean energy, and transportation to foster African growth and resilience. By targeting long-dated infrastructure assets that align with investors' long-term liabilities, such as pensions and inflation-protected investments, Prosper Africa aims to address investors' concerns about returns and inflation. The conversation with CNBC Africa's Godfrey Mutizwa also touched on the role of government regulations and development finance institutions in de-risking investment opportunities for private capital. Khosrowshahi stressed the need for governments and financial systems to take more risks to attract private sector investments at scale. By creating investable assets and fostering deeper partnerships between development finance institutions and private capital, the potential for mobilizing private sector funds increases, aligning with investors' fiduciary obligations. Moreover, the collaboration with institutions like the African Development Bank (AfDB) plays a significant role in de-risking investments and making assets more attractive to private investors. Prosper Africa maintains close communication with AfDB and other development finance institutions to leverage multiple trust funds that support de-risking efforts. Khosrowshahi called for a more systematic approach to scaling up these efforts, emphasizing the potential for MDBs to mobilize private capital and distribute assets effectively across African markets. In conclusion, Prosper Africa's commitment to driving increased US investment in Africa underscores the importance of strategic partnerships, sector diversification, and risk management in unlocking the continent's economic potential. By harnessing global assets, engaging new actors, and collaborating with key stakeholders, the initiative aims to foster sustainable growth and development across Africa.