Infrastructure development has a reputation as the domain of large institutions, government agencies, and multinational corporations. That reputation is increasingly outdated — and for African entrepreneurs, it has always been a reason to pay attention, not to look away.
The upside of getting a project to financial close
When a developer successfully brings a project to financial close, they typically receive:
- A development fee — paid at financial close, this compensates the developer for the risk they took and the work they did during the development phase. On a $30 million project, a development fee of 2–4% of project cost is not unusual. That is $600,000 to $1.2 million, paid in cash at close.
- An equity stake — most developers retain an equity interest in the project SPV, typically 10–30% depending on how the financing was structured. Over a 20-year operational life, equity in a well-structured project generates substantial long-term returns.
- Ongoing management fees — many developers also provide management services to the project company and charge an annual fee for doing so.
The development timeline is real — but so is the reward
It is important to be honest: getting a project from idea to financial close typically takes two to five years. That is a long development cycle, and it requires patience, persistence, and the ability to work through setbacks.
But consider what you are building during that time. Every permit obtained, every contract signed, every study commissioned is an asset — it represents value that has been created and is embedded in the project. By the time you reach financial close, you have built something of real substance, and the market recognises that.
You do not need to be rich to start
Early-stage development — identifying the opportunity, engaging with potential offtakers, scoping the site — requires time and effort more than capital. Many developers spend the first year or two of a project's life working without significant external funding, using their own time and modest resources to prove the concept.
Once the project has sufficient credibility, development finance is often available. DFIs and development-focused equity investors frequently provide early-stage development capital — sometimes in the form of grants, sometimes as repayable loans — to help promising projects reach bankability.
Why more African entrepreneurs should be in this space
The infrastructure gap in Africa is not going to be closed by foreign developers. It will be closed — if it is closed — by people who understand the local context, have relationships with local governments and communities, and are committed to the long term.
That is you. Local developers have an irreplaceable advantage in African infrastructure. The capital is looking for them. The question is whether they are ready — whether their projects are structured well enough to attract it.
That is precisely the question tayari is designed to help answer.