世界发展银行-Malawi---Mobilizing-Long-Term-Finance-for-Infrastructure_164页_4mb

Summary of Malawi: Mobilizing Long-Term Finance for Infrastructure

Core Content

This report, prepared by the World Bank in February 2021, explores how the Government of Malawi (GoM) can mobilize long-term finance for infrastructure development. It highlights the challenges of financing infrastructure in a low-income country with limited tax revenues, a shrinking official development assistance (ODA), and a small tax base. The report provides a framework for enhancing the volume of investment and finance for infrastructure, with a focus on public-private partnerships (PPPs) and state-owned enterprises (SOEs).

Main Views and Key Information

1. Infrastructure Investment Needs

• Malawi faces significant infrastructure investment needs, particularly in energy, water, and transport.
• Public investment has been low, averaging 4.18% of GDP between 1998 and 2017.
• The public capital stock per capita (proxy for infrastructure stock) grew at a CAGR of only 0.88% over the same period.
• Annual investment requirements for infrastructure are estimated at around 8% of GDP for the few sectors and SOEs covered in the report.

2. Challenges in Long-term Finance Flow

• Long-term finance for infrastructure is not flowing adequately due to several factors:
  • Limited public investment capacity
  • High poverty levels that restrict the ability to increase end-user charges/tariffs
  • Weak institutional frameworks and regulatory environments
  • Low market readiness of SOEs
  • Poor financial performance and borrowing capacity of SOEs
  • The impact of the global financial crisis (GFC) and the subsequent decline in multilateral and bilateral financing

3. Facilitating Access to Long-term Finance

• The report recommends a multi-pronged approach to mobilize long-term finance, including:
  • Enhancing the market readiness of SOEs
  • Strengthening the financial sector and capital markets
  • Improving the regulatory environment and public procurement processes
  • Leveraging blended finance and public-private investment vehicles
  • Creating a more attractive investment climate through reforms

4. Role of Public Finance

• Given the limited private capital mobilization, public finance will remain the primary source of funding for infrastructure in the near future.
• Public finance should be prioritized for:
  • Projects that cannot attract private capital (e.g., social infrastructure)
  • Projects that require government contributions in PPPs
  • Addressing market failures in the enabling environment to improve the risk-return profile of projects

5. Recommendations

• The GoM should implement measures to enhance market-based financing for commercially viable projects and SOEs.
• A shift is needed from financing all projects through public sources to a more selective approach that emphasizes additionality.
• The report advocates for:
  • Reforming the Doing Business framework to improve the investment climate
  • Enhancing transparency and accountability in public enterprises
  • Strengthening the financial sector and capital markets
  • Increasing the use of blended finance and public-private investment vehicles
  • Improving the regulatory environment and public procurement practices

Key Figures and Data

• Public Investment: Averaged 4.18% of GDP (1998–2017)
• Public Capital Stock Growth: 0.88% CAGR (1998–2017)
• Private Investment in Infrastructure: Ranges from 0 to 1% of GDP, with a global average of 0.5%
• Global PPP Investment (1998–2017): Averaged 0.51% of GDP
• Project Finance Loans (1998–2017): US$282.7 billion, with nearly half (48.7%) allocated to power projects
• Malawi’s PPP Investment (1998–2017): Low compared to other African countries
• Market Readiness of SOEs: Assessed using a distance-to-market score
• Public Finance Use: Should be targeted to projects that require government support or cannot attract private capital

Conclusion

The report underscores the need for a more strategic and efficient approach to infrastructure financing in Malawi. It emphasizes the importance of leveraging market-based finance, improving the performance of SOEs, and creating an enabling environment that attracts private investment. The ultimate goal is to achieve a sustainable and diversified funding model that supports long-term infrastructure development and economic growth.