Report Launch: Investment Facilitation Revisited
The report updates the understanding of country and firm-level barriers to investment (macro-level constraints, lack of capital for risk/return profile, transaction costs, and information asymmetries), and nuances the suggested interventions to address them. With a particular focus on neglected firm-level barriers, the report describes how supporting pioneer investors and companies with expertise, surge bandwidth, geographic presence, and neutral intermediation can unlock stalled investment opportunities. Buttressing their findings with recent development literature, the report highlights that transaction costs in frontier markets remain high and typically put first movers at a disadvantage in new sectors or geographies. It also emphasizes how information gaps, which can be solved through diligence and analysis, and information asymmetries, which stem from underlying trust and incentive problems, are distinct investment challenges and should be approached as such.
Using case studies from CrossBoundary's work in Africa and Asia, the authors stress the need for investment facilitation led by highly skilled intermediaries with deep local knowledge. They also suggest potential improvements in the model to ensure further integration of local advisory actors into the investment process, and the development of intelligent metrics to evaluate progress and align incentives.
Please join us on Wednesday, September 18th for this timely event.
This event is made possible by the generous support of the CrossBoundary Group.