The World Bank Group just issued its 2020-H1 HALF YEAR REPORT on Private investments (Commitments) to infrastructure in Emerging and developing economies. This report shows the biggest drop we’ve seen since tracking the data. Of course COVID 19 makes for an easy culprit for this sobering assessment ! But we shouldn’t seek comfort in COVID being the unpredictable and temporary reason for this state of affairs. Beyond the fact that the sanitary & economic crisis only started to affect the investment landscape from March onwards, impacting the 2nd Quarter but much less so Q1, the reality is that we’ve been on subpar, and stagnant PPI trajectory for many years. This is all the more worrying that the consequences of the current crisis -in terms of creditworthiness, borrowers’ liquidity, and counterparties’ financial robustness, may linger on for some time delaying much needed global achievements. As a reminder, at current rate, SDGs may not be achieved before 2082, and the Paris climate accord targets look out of reach for 2030. We need to do a better job collectively: Multilateral Development Banks, International/Development Financing Institutions,Policy-makers and Regulators, as well as the Private sector sponsors , developers and financiers. This is also in the best interest of Institutional investors , such as LTIIA members, as it potentially offers them access to growth, diversification and higher returns, while increasing their impact or ESG profile. We should get ready to do our bit!
Here’s the full report: