Emerging Markets’ Infrastructural Sector — At a Tipping Point
Published on 26 May, 2016
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Global infrastructure sector continues to bear the brunt of constrained public budgets and lack of effective government and private partnerships that has led to inadequate investment and a disappointing growth. Consequently, the gap between the required and actual investment continues to widen. We believe, selective investment strategy in emerging markets will open door to plethora of investment opportunities in the sector.
While in emerging markets basic infrastructural facilities are not up to the mark, there is an increasing demand underpinned by growing populations, rising affordability, the need to upgrade to better standards of living, and improving levels of urbanization and modernization.
We believe emerging markets in Asia and Africa offer better growth opportunities supported by high single digit growth in their economies in real terms. However, these opportunities tag along challenges related to executional bottlenecks associated with poor governance, and a lack of experience in implementing projects using superior methods.