ABSTRACT
The 1980s mark a turning point in Africa's quest for economic growth and transformation. Africa is chronically short of the funds required for development, capital expenditures, and recurrent expenditures. Unilateral and bilateral donor agencies injected billions of dollars into Africa's new and fragile economies. Multilateral and bilateral financial institutions are very effective in designing, financing, and implementing projects in the areas of physical infrastructure, agriculture, rural development, education, and health. Constructed investment projects should provide a wide range of economic and financial benefits: job creation/retention, increased income, increased tax revenues, additional foreign exchange, and increased utilization of domestic raw materials. In developing a realistic financial plan, staff will prepare cash flow analyses, calculations of financial rates of return on the project, and deviation analysis. Venture capital companies characterize potential investments in one of four basic stages: start-ups, first-stage financing, second-stage financing, and third-stage financing.
