To generate a broader pipeline of projects for finance/investment, ensure that the specific needs of each region can be fully addressed, and to engage regional/local actors, the SDIP membership recognized the need to establish a local presence. To accomplish this and to help drive forward the process of regional/national acceleration of infrastructure financing, the concept of regional “Hubs” is being piloted with an initial one in Africa. The Hubs will provide platforms for engaging a broad range of partners, including non-SDIP members, who may have deeper regional insights and engagement than global members.
SDIP envisions that regional hubs will be launched in each of the three key geographic areas – Africa, ASEAN, and Latin America. Each regional Hub is envisioned as a self-sustaining entity, with the operation and ambition of the Hub defined by its members. Depending on the size and/or complexity of the region, a series of sub-regional “spokes” (i.e. Eastern & Southern and Western & Central Africa) may be established to further localize engagement, operations, and the transaction pipeline.
This approach to local engagement by SDIP is expected to provide a number of transactional benefits in each region, including:
- Expanding the breadth and depth of capital sources in local markets;
- Developing local knowledge and expertise, especially related to governance and regulatory frameworks;
- Deepening and improving the pipeline of curated projects; and
- Cultivating an engaged networks of practitioners with regionally relevant insight and involvement to facilitate blended finance transactions.
Members of the regional Hubs will also benefit from engagement with SDIP at a global level through increased exposure to international capital markets, the sharing of best practices across regions, and the ability to draw on the collective membership to help shape policy and influence regulation.