Leveraging Technology Innovation to Fill the Infrastructure Gap in Asia & Africa

1. Leveraging Technology
Innovation to
Fill the Infrastructure Gap
in Africa & Asia
Presentation to the
Silk Road Summit
04 November 2019 | Washington, DC

2. Contents
Infrastructure
Investment Gap
Technology
Innovation
Financing
Technology
Diffusion
How We
Can Help
Summary

3. Infrastructure Investment Gap

4. Asia: $26 Trillion
Infrastructure Needs
• ADB estimates $26 trillion infrastructure investment
needed for its 45 Developing Member Countries for
2016-2030
• This equates to annual infrastructure investment of
$1.7T
• The current infrastructure investment gap is 2.4% of
GDP for the group, or 5% if China is excluded
• MDBs historically finance 2.5% of infrastructure
investment
• Private sector investment must increase from $63B
to $250B a year in order to fill the gap

5. Africa Annual
Infrastructure Needs
$130-$170B
• AfDB estimates current
infrastructure funding gap at
$68B–$108B
• Infrastructure Consortium for Africa
estimates private sector currently
contributing $2.3B (2.8% of total)
• Opportunity to increase private
sector investment by $60-$100B

6. Public and
Private
Infrastructure
Investment
• Technology leapfrogging catalyzed
private investment in telecoms &
energy
• Need for technology innovation to
pave the way for private
investment in transport, water
sectors
2011, ADB

7. Technology
Innovation

8. Technology’s Role in
Economic Growth
The AK Growth Model
Y = AK
where:
Y is GDP
A is technology
K is capital in all forms
(human, environmental,
financial, etc.)
• Technology is endogenous
• Increasing returns to scale
Roger’s Model

9. Increasing Rate of Technology Diffusion

10. SSA Phone
Subscriptions
• Global rate of diffusion increasing
• SSA leapfrogging obsolete
technologies
• Endogenous growth: customized
technologies, e.g. mobile money
• Danger of investing in obsolete
technologies / infrastructure
Source: World Bank World Development Indicators Database

11. Sales of Off-Grid Lighting Products
Source: Global Off Grid Lighting Association (GOGLA)

12. Financing Technology Diffusion

13. Typical Stages of Clean Energy Innovations

14. Venture Capital Deals, 2007-H1 2019
Source: Preqin Pro
South Asia Greater China ASEAN

15. Recent VC
Investments in
Asia

16. African VC
Activity

17. $2B+ Corporate Investment in Off-Grid

18. How we can help

19. CAPITAL RAISING
for Innovative Companies & Projects
Types of Financing
● $2M—$200M+
● Venture Capital
● Corporate Finance
● Mergers & Acquisitions
● Project Finance
Sources of Financing
● VC & PE Funds
● Commercial Banks
● Impact Funds
● Pension Funds
● Insurance Companies
● Strategic Corporates
● Development Finance
Sectors
● Infrastructure
• Transport
• Energy
• Water
• Telecoms
● Real Estate
● Finance

20. Summary

21. Summary
Infrastructure needs in Asia and Africa are
much higher than current funding amounts
and institutional arrangements can deliver
Technology innovation offers a rapid approach
to addressing infrastructure needs
Venture capital is a key source of financing for
new technologies and its use is growing
throughout Asia and Africa
Claret Consulting can help broker innovative
financing solutions to address infrastructure
needs throughout Asia and Africa

22. DisclosureBrien Desilets, the principal of Claret Consulting is also a registered representative of Ashland Securities, LLC Member FINRA SIPC. Claret Consulting and
Ashland Securities, LLC are unaffiliated entities. All investment banking services are offered through Ashland Securities, LLC, Member FINRA SIPC. This
presentation is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any
securities nor does it constitute a solicitation of any such offer or invitation and shall not form the basis of any contract with Ashland Securities, LLC. This
presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing
provided by Claret Consulting. Neither this presentation nor any of its contents may be used for any other purpose without the prior written consent of
Claret Consulting. The information in this presentation is based upon Claret Consulting estimates and reflects prevailing conditions and our views as of this
date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the
accuracy and completeness of information available from public sources. Neither Ashland Securities, LLC nor Claret Consulting makes any representations as
to the actual value which may be received in connection with a transaction or the legal, tax or accounting effects of consummating a transaction. Ashland
Securities, LLC and Claret Consulting do not render legal or tax advice, and the information contained in this communication should not be regarded as such.
The information in this presentation is confidential. If you are not the intended recipient or an authorized representative of the intended recipient, you are
hereby notified that any review, dissemination or copying of this presentation is prohibited. The Principal of Claret Consulting is a registered representative of
and Securities and Investment Banking Services are offered through Ashland Securities, LLC Member FINRA SIPC. Claret Consulting and Ashland Securities, LLC
are separate and unaffiliated entities.

23. Thank you
Brien Desilets
Managing Director, Claret Consulting
Registered Representative, Ashland
Securities, LLC
+1 202 332 1934
bdesilets@claretconsult.com
www.claretconsult.com