Navigating Geopolitical Risks in Infrastructure Development

This article was produced by Marsh, a member of IPFA. 

The infrastructure development landscape has been hampered by a global environment made more volatile and riskier by systemic macroeconomic and geopolitical changes.

This is compounded by the fact that more than 60 countries, representing at least 40% of the global population and GDP, will hold elections in 2024. This biggest election year in history forces organizations making investment decisions to consider how long-term uncertainty caused by geoeconomic competition and geopolitical insecurity may also be influenced by current events.

These concerns permeate the value chain for infrastructure development, impacting corporate and private capital equity investors, providers of project debt, and construction firms, and ultimately impacting governmental authorities of host countries that need such investments.

In this article, Marsh explores the impact geopolitical risk is having on major infrastructure development, delve into how this relates to key stakeholders, and present possible ways to mitigate these risks.

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