As demand for infrastructure and energy projects continues to grow, project finance advisory firm Cresco is well-equipped to play a pivotal role in shaping Africa’s development trajectory by assisting with getting projects to a fundable state.

The company’s expertise has positioned Cresco as a key player in driving sustainable development, ensuring that projects move from concept to execution with strong financial backing.

Over the past 20 years, the firm has applied its expertise across numerous industry sectors, including energy, infrastructure and mining in many sub-Saharan African jurisdictions.

While it remains sector-agnostic, much of Cresco’s current work is focused on energy transition, transportation infrastructure, such as rail and ports, and enabling PPPs. The firm is currently helping to prepare public-sector entities to secure private investment as part of a multi-disciplinary transaction advisory team to enable private-sector participation around ports and gas infrastructure.

“We started the business to bridge the gap by assisting project promoters to develop fundable projects. Our involvement starts as early as possible in the project development cycle to formulate a strategy to secure funds and identify what’s lacking to achieve fundability and then to advance projects to financial close,” says Cresco MD Conrad Hefer in a video interview with Mining Weekly editor Martin Creamer.

The company has contributed to numerous successful projects, particularly in mining, infrastructure and energy. Historically, the firm supported South African banks and contractors in implementing some of the most successful mining projects in Africa. More recently, it has been instrumental in energy projects, not only in terms of generation but also in advising intensive energy users, such as mining major Anglo American and data centre developers like Amazon and MTN, on implementing renewable energy strategies and procurement.

The firm has also played a key role in facilitating private power purchase agreements, which have become increasingly relevant in a market where private companies seek reliable alternative energy solutions that are independent of or supplementary to national grids, adds Hefer.

Beyond energy and mining, Cresco has a proven record in private healthcare, agriculture and real estate, including student housing and commercial property.

Founded by former project finance professionals with corporate and investment banking track records, Cresco is majority-owned by its management team, advises Hefer, highlighting that the company is currently in the market for a corporate strategic partner with a global footprint that will help Cresco to realise its growth aspirations.

Cresco’s approach is hands-on, going beyond traditional advisory roles by actively participating in project development from the concept stage to financial closure, offering complementary services such as specialised technical support and project management to manage diverse work streams to get the project to a fundable state.

“We also provide post financial close support during the construction and operational stages. The core tool we use is cash flow or financial modelling to analyse the projected cash flow against the actual cash flow achieved to evaluate a project’s performance and course correct if necessary,” elaborates Hefer.

With Cresco’s core discipline being project finance advisory, the company can also assist with refinancing projects at various stages, helping clients optimise their financial structures to enhance long-term profitability. This is particularly relevant where long-term capital investments require periodic restructuring to maintain financial stability.

Mission Critical

Hefer says there is significant investment needed in the current market, especially in the public-sector space.

“The infrastructure and energy needs across Africa, requires substantial private-sector investment, which calls for projects to be packaged in a fundable state. We've been pulled into the public-sector space for that main reason – to assist the public sector to achieve a fair risk-sharing arrangement with the private sector to enable capital to be mobilised towards investment required in the public-sector space.”

There is a critical investment deficit at public-sector level in South Africa that is even greater in  the rest of Africa.

Hefer stresses that the problem is extreme in South Africa but is even more pronounced across the continent.

“In terms of the global economy, there's a shift around the traditional means of addressing these deficits, and it will point towards the need for a more private-sector-focused investment programme. For that reason, you need the right advisers on board to give a project the best chance possible to be successfully implemented and enable economies to grow.”

Contact details:

Tel: + 27 (0)12 663 3660

Email: info@crescogroup.africa

https://crescogroup.africa/contact-us/