Macrotrends such as shifts in demographics, environmental awareness, urbanization are transforming one of today’s most fundamental asset classes, infrastructure. Required for the operation of any society, infrastructure is providing investors with impressive returns along with opportunities to capture the benefits of these megatrends; infrastructure investment has consequently shown impressive growth in the past decade.
Infrastructure that is up to code is vitally important to sustaining a country’s economy, but even developed countries are falling behind in their infrastructure investment. Effective infrastructure investment needs to be a combined effort of governments, multilateral development banks and private investors, but it lags behind in its appeal to private investors. What measures can be taken to draw more private-sector financing into this crucial foundation of economic growth?
Across the world, governments are increasingly acknowledging the need to raise the levels of investment in infrastructure projects within their respective countries.