CMS Infrastructure Index shows markets are buoyant

International

New report CMS Infrastructure Index: Accelerating transformation examines the trends impacting the infrastructure sector, ranks 50 countries by attractiveness for infrastructure investment and analyses opportunities around the world.

The report examines key trends that are impacting the full spectrum of infrastructure; from protectionism and the impact this has had on the flow of capital across global markets, ESG’s importance in investment decisions to digital infrastructure, new funding models and the Belt and Road Initiative. The sector continues to evolve rapidly around the world.

COVID-19 has provided the backdrop for tougher controls on foreign investment. The likes of the UK, France and Australia have either introduced laws for the first time or reduced the thresholds for voting rights or transaction values. However, that is not the case for all markets. It is too early to tell what impact such regulations will have on capital flows in developed markets but on current transaction levels, it appears to be limited.

There is significant attention on digital infrastructure and the pandemic demonstrated the need for investment in a balanced range of technologies. Cloud services and satellite connectivity will increase to deliver high speed internet anywhere in the world.

Infrastructure has always played an important role in ESG and Net Zero is playing an increasingly large part in government policy; disclosures are now mandatory requirements and projects that will reduce carbon emissions are being supported. Investment strategies are also being shaped by stakeholders as they start to voice their concerns, including by way of shareholder activism and litigation.

The CMS Infrastructure Index has ranked 50 countries by their attractiveness for infrastructure investment and it paints a very positive picture. Singapore tops the leader board, bolstered by the unveiling of its Green Plan 2030 which aims to advance sustainable development and reduce the country’s carbon footprint.

The CMS Infrastructure Index also provides regional analysis and market perspectives from those active in different regions. We hear from AimCo, Amber Infrastructure, Deloitte, First Sentier, InfraCo Africa, InfraRed Capital Partners, Macquarie Capital and Pembani Remgro.

Click here to view the report.