Institutional Infrastructure Investment Allocation Agenda
Known as “The 5% Agenda”, the Institutional Infrastructure Investment Allocation Agenda is the cornerstone of Africa’s post pandemic infrastructure investment growth plan, encouraging
investment in just green transition.
The “Africa rising story” some 10 years ago demonstrated that agriculture and infrastructure development is fundamental to the continent’s sustained socio-economic transformation. Whilst various initiatives and programmes over the years have supported Africa’s reform agenda, mobilizing domestic and global institutional capital to facilitate job creation for Africa’s young population continues to be a fundamental challenge, hampering Africa’s economic transformation and competitiveness in the fast-growing green global industrial economy.
The 5% Agenda is the continent’s asset owner platform to increase investment allocations in investible African infrastructure to at least 5% of assets under management (AUM) (from less than 2% currently). Endorsed by African Union Heads of State, it provides an innovative, more aligned Institutional Investor-Public Partnership (IIPP) framework, a model that has successfully been deployed in Canada and Australia between pension and sovereign funds and government.
IIPPs seek to ensure that the investible assets meet their full potential; are delivered on time and on budget; unlock economic development; and receive the ongoing investment required to ensure they are regularly and properly maintained.
Under The 5% Agenda, African Union Heads of State are working with Africa’s institutional investment community and economic policymakers to define the interventions needed for relevant in-country programme financing and long-term private investment. Ultimately interventions that will help to accelerate financial close of investible regional and domestic infrastructure projects.