This week, the TXF roadshow returns to Cape Town for its Africa 2024 Agency, Energy and Infrastructure Finance event. In preparation, this edition of the data snapshot delves into export finance across the continent since 2020. Africa ranks as the second-largest region for ECA activity during this period, narrowly surpassing Asia Pacific, but still trailing Europe significantly. A noticeable gap is developing as ECAs pursue large-scale deals in developed markets that align with their governments’ energy transition plans.
The pipeline for Africa has remained steady, and the focus on developed markets has not led to a decline in volumes elsewhere. Oil and gas dominate this period, although a small number of deals account for a substantial portion of the total. Notably, a major LNG project constitutes a significant part of this sector. Despite fluctuations, oil and gas continue to be a vital source of large deals in Africa, particularly for LNG and enhancements to downstream refinery capacity. In contrast, general infrastructure emerges as the leading industry with numerous deals spanning railways, ports, healthcare, and more.
Unsurprisingly, government ministries dominate the list of the region’s largest borrowers. The cost of debt in Africa remains prohibitively high, and the pipeline for sovereign guarantees has diminished in 2024. Sovereign finance represents a small fraction of total export finance volumes this year. This situation disproportionately affects developing markets, leading to low volumes across the continent. Although significant deals have been completed in some larger economies, like Angola and Senegal, Sub-Saharan Africa faces challenges in securing capital for essential infrastructure projects.
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Source: #TXFIntelligence
