Dubai – The importance of Africa‘s economic situation from the European perspective was demonstrated last November by the European Union‘s renewed push for billions of euros of investment there. With the conclusion of ten financial guarantee agreements with partner financial institutions, the European Commission has facilitated future investments of up to 10 billion euros in Africa for economic recovery from the Corona pandemic. Jutta Urpilainen, European Commissioner for International Partnerships, said: „These agreements will directly support people facing specific challenges due to Covid-19: Small business owners, the self-employed, entrepreneurs. They will also help finance a significant expansion of energy production from renewable sources.“ The November 2020 agreements complete the European Fund for Sustainable Development (EFSD), which is an important EU financial instrument to support investments in third countries. „Now our partners can use the plan‘s individual guarantees to mobilise billions of euros of much-needed investment, particularly in Africa“, Urpilainen stressed.
Germany also wants to help Africa take advantage of existing development opportunities and growth potential. To mobilise private investment funds for Africa, the Federal Government supports the „Wirtschaftsnetzwerk Afrika“ („Business Network Africa“). Its task is to make it easier for small and medium-sized enterprises from Germany to enter the African market. This is done through a wide range of advisory services, the provision of local contacts and the use of special financial support. In this way, obstacles to investment such as inadequate infrastructure, political instability and a lack of offers for financing are to be eliminated.
The Dubai-based Infinity Group Participation Company specialises in closing such financing gaps and financing individual projects as well as entire companies. This is especially true for Africa with its growth potential confirmed by many experts. The Arab investment experts offer business consulting and financing from a single source. In its self-promotion it says: „From banking and insurance to asset management and securities distribution, the company‘s dedicated financial services teams serve all major sectors of the industry. Our work is based on more than 15 years of experience.“ The claim is to offer financing solutions that are as individual as possible: „In the financing world, loans are only given to those who can prove that they don‘t need them. Our selection criteria are a little different: we have a start-up ramp strategy.“ According to its website, the group‘s management consultancy covers „strategy, marketing, organisation, operations, technology, transformation, digital, advanced analytics, corporate finance, mergers & acquisitions and sustainability across all industries and geographies“.
The Infinity Group has 22 satellite offices, 88 mediators and 2,457 active refinancers, which have financed 478 projects worldwide in a wide range of economic sectors. The Dubai-based consultants helped build an oil refinery in Russia, a large solar power plant in Sri Lanka and a five-star hotel in India. They also financed a shopping centre in the Philippines, an automobile plant in China, an agricultural project in Ghana and a specialised hospital in Nigeria. Africa plays an important role in Infinity Group Participation Company‘s financing activities.
The demand for alternative sources of financing is constantly increasing – this applies both to companies from Europe willing to invest and to emerging African companies. Fewer and fewer entrepreneurs want to rely on the traditional banks with their limited lending and are instead looking for uncomplicated investment capital. The Corona crisis has made it even more difficult to obtain loans in many cases. This is where Infinity Group comes in as a project financier. The financial services provider explains: „The demands placed on qualified start-ups with competitive business models and experienced management teams have greatly extended the lending cycle in many African countries. And when business loans are available, the cost of capital has increased.“
Financing alternatives are sought above all by companies that want to grow and expand quickly. These African growth markets include, for example, renewable energies and e-commerce. The Infinity Group offers hedge funds, pension funds, sovereign wealth funds and other financiers the opportunity to participate in the financing of promising companies in important African economic centres at an early stage. Last year, for example, the UAE-based group was able to help many fast-growing companies in Africa secure financing shares through a pool of international investors. Among the money recipients are companies in Nigeria, Botswana, South Africa and Tanzania. The Infinity Group takes care of the market analysis and the entire due diligence. The potential partners are assured: „The companies are able to secure financing at competitive interest rates and extended maturities while contributing to job creation and economic growth in their local markets.“
For real estate financing in Africa, but also elsewhere, the Arab group of companies can draw on Beyond Infinity Real Estate‘s many years of experience. The company, based at Marina Plaza in Dubai, offers a carefully selected portfolio of exceptional rental, sales and off-plan properties. Off-plan properties are properties that are offered for sale before construction and offer several advantages. Purchasing such properties is appealing because they are often below market price, they appreciate in value before completion and allow time to plan and save. The real estate professionals describe themselves like this: „We are the highest quality services provider locally, nationally and globally through dedicated real estate and financial experts who are backed by world-class training and have a market-leading analytical function. We offer advice on all aspects of real estate and support our customers in making profounded and value-adding decisions based on our extensive experience, real estate expertise and industry knowledge.“
The aim is to accommodate all customer wishes, whether it is the purchase or sale of land, residential or commercial real estate. The brokerage of real estate investments in the United Arab Emirates is also confidently advertised. An annual return of up to 10 percent is promised for investments in first-class existing properties and lucrative project developments.