The primary aim of this research is to explore micro and macro-level approaches to reducing the level of risk attached to African infrastructure assets, in order to increase private sector participation and liquidity in the market. Lagos was adopted as the primary case study region for a practical comparative analysis of three key PPP infrastructure projects that experienced varying degrees of success, alongside a high-profile PPP project in Scotland.
On a macro scale, the legal and regulatory environments in African countries must be developed to support innovative trends in the global financial markets. In addition to the ongoing securitization of project finance loans by lenders, Future-Flow Securitization of free cash flows from high-performing publicly funded infrastructure assets could enable these governments to benefit from credit arbitrage, providing funding opportunities beyond the sovereign credit ceiling. By taking advantage of this sustainable financing model, governments can reduce the tax burden brought about by capital expenditure, allowing them to ensure a greater focus on their core sustainable development objectives, such as the correction of market failures and the preservation of social capital.